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Published: 2021-07-13 00:00:00 ET
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EX-99.2 3 a2q21erfex992supplement.htm EX-99.2 Document
                                                                    
Exhibit 99.2





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EARNINGS RELEASE FINANCIAL SUPPLEMENT

SECOND QUARTER 2021















                                                                    
JPMORGAN CHASE & CO.
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TABLE OF CONTENTS
Page(s)
Consolidated Results
Consolidated Financial Highlights2–3
Consolidated Statements of Income4
Consolidated Balance Sheets5
Condensed Average Balance Sheets and Annualized Yields6
Reconciliation from Reported to Managed Basis7
Segment Results - Managed Basis8
Capital and Other Selected Balance Sheet Items9
Earnings Per Share and Related Information10
Business Segment Results
Consumer & Community Banking (“CCB”)11–14
Corporate & Investment Bank (“CIB”)15–17
Commercial Banking (“CB”)18–19
Asset & Wealth Management (“AWM”)20–22
Corporate23
Credit-Related Information24–27
Non-GAAP Financial Measures28
Glossary of Terms and Acronyms (a)
(a)    Refer to the Glossary of Terms and Acronyms on pages 305–311 of JPMorgan Chase & Co.’s (the “Firm’s”) Annual Report on Form 10-K for the year ended December 31, 2020 (the “2020 Form 10-K”) and
the Glossary of Terms and Acronyms and Line of Business Metrics on pages 163-168 and pages 169-171, respectively, of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended March 31,
2021.

                                                                    

JPMORGAN CHASE & CO.
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CONSOLIDATED FINANCIAL HIGHLIGHTS
(in millions, except per share and ratio data)
QUARTERLY TRENDSSIX MONTHS ENDED JUNE 30,
2Q21 Change2021 Change
SELECTED INCOME STATEMENT DATA 2Q211Q214Q203Q202Q201Q212Q20202120202020
Reported Basis
Total net revenue (a)$30,479 $32,266 $29,335 $29,255 $33,075 (6)%(8)%$62,745 $61,361 2 %
Total noninterest expense17,667 18,725 16,048 16,875 16,942 (6)4 36,392 33,733 8 
Pre-provision profit (b)12,812 13,541 13,287 12,380 16,133 (5)(21)26,353 27,628 (5)
Provision for credit losses(2,285)(4,156)(1,889)611 10,473 45 NM(6,441)18,758 NM
NET INCOME11,948 14,300 12,136 9,443 4,687 (16)155 26,248 7,552 248 
Managed Basis (c)
Total net revenue31,395 33,119 30,161 29,941 33,817 (5)(7)64,514 62,827 3 
Total noninterest expense17,667 18,725 16,048 16,875 16,942 (6)4 36,392 33,733 8 
Pre-provision profit (b)13,728 14,394 14,113 13,066 16,875 (5)(19)28,122 29,094 (3)
Provision for credit losses(2,285)(4,156)(1,889)611 10,473 45 NM(6,441)18,758 NM
NET INCOME11,948 14,300 12,136 9,443 4,687 (16)155 26,248 7,552 248 
EARNINGS PER SHARE DATA
Net income: Basic$3.79 $4.51 $3.80 $2.93 $1.39 (16)173 $8.30 $2.17 282 
Diluted3.78 4.50 3.79 2.92 1.38 (16)174 8.28 2.17 282 
Average shares: Basic3,036.6 3,073.5 3,079.7 3,077.8 3,076.3 (1)(1)3,054.9 3,086.1 (1)
Diluted3,041.9 3,078.9 3,085.1 3,082.8 3,081.0 (1)(1)3,060.3 3,090.8 (1)
MARKET AND PER COMMON SHARE DATA
Market capitalization$464,778 $460,820 $387,492 $293,451 $286,658 1 62 $464,778 $286,658 62 
Common shares at period-end2,988.2 3,027.1 3,049.4 3,048.2 3,047.6 (1)(2)2,988.2 3,047.6 (2)
Book value per share84.85 82.31 81.75 79.08 76.91 3 10 84.85 76.91 10 
Tangible book value per share (“TBVPS”) (b)68.91 66.56 66.11 63.93 61.76 4 12 68.91 61.76 12 
Cash dividends declared per share0.90 0.90 0.90 0.90 0.90 — — 1.80 1.80 — 
FINANCIAL RATIOS (d)
Return on common equity (“ROE”)18 %23 %19 %15 %7 %21 %6 %
Return on tangible common equity (“ROTCE”) (b)23 29 24 19 9 26 7 
Return on assets1.29 1.61 1.42 1.14 0.58 1.44 0.50 
CAPITAL RATIOS (e)
Common equity Tier 1 (“CET1”) capital ratio13.0 %(f)13.1 %13.1 %13.1 %12.4 %13.0 %(f)12.4 %
Tier 1 capital ratio15.1 (f)15.0 15.0 15.0 14.3 15.1 (f)14.3 
Total capital ratio17.1 (f)17.2 17.3 17.3 16.7 17.1 (f)16.7 
Tier 1 leverage ratio6.6 (f)6.7 7.0 7.0 6.9 6.6 (f)6.9 
Supplementary leverage ratio (“SLR”)5.4 (f)6.7 6.9 7.0 6.8 5.4 (f)6.8 
 
(a)In the first quarter of 2021, the Firm reclassified certain deferred investment tax credits from accounts payable and other liabilities to other assets to be a reduction to the carrying value of certain tax-oriented investments. The reclassification also resulted in an increase in income tax expense and a corresponding increase in other income, with no effect on net income. Prior-period amounts have been revised to conform with the current presentation, including the Firm’s effective income tax rate. The reclassification did not change the Firm’s results of operations on a managed basis.
(b)Pre-provision profit, TBVPS and ROTCE are each non-GAAP financial measures. Tangible common equity (“TCE”) is also a non-GAAP financial measure; refer to page 9 for a reconciliation of common stockholders’ equity to TCE. Refer to page 28 for a further discussion of these measures.
(c)Refer to Reconciliation from Reported to Managed Basis on page 7 for a further discussion of managed basis.
(d)Quarterly ratios are based upon annualized amounts.
(e)The capital metrics reflect the relief provided by the Federal Reserve Board (the “Federal Reserve”) in response to the COVID-19 pandemic, including the Current Expected Credit Losses ("CECL") capital transition provisions that became effective in the first quarter of 2020. For the periods ended June 30, 2021, March 31, 2021, December 31, 2020, September 30, 2020 and June 30, 2020, the impact of the CECL capital transition provisions resulted in an increase to CET1 capital of $3.8 billion, $4.5 billion, $5.7 billion, $6.4 billion and $6.5 billion, respectively. The SLR prior to the periods ended June 30, 2021 reflects the temporary exclusions of U.S. Treasury securities and deposits at Federal Reserve Banks, which became effective April 1, 2020 and remained in effect through March 31, 2021. Refer to Capital Risk Management on pages 36-41 of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2021 for additional information on the Firm’s capital metrics. Refer to Regulatory Developments Relating to the COVID-19 Pandemic on pages 52-53 and Capital Risk Management on pages 91-101 of the Firm’s 2020 Form 10-K for additional information.
(f)Estimated.
Page 2
                                                                    
JPMORGAN CHASE & CO.
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CONSOLIDATED FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except ratio and headcount data)
QUARTERLY TRENDSSIX MONTHS ENDED JUNE 30,
2Q21 Change2021 Change
2Q211Q214Q203Q202Q201Q212Q20202120202020
SELECTED BALANCE SHEET DATA (period-end)
Total assets (a)$3,684,256 $3,689,336 $3,384,757 $3,245,061 $3,212,643 — %15 %$3,684,256 $3,212,643 15 %
Loans:
Consumer, excluding credit card loans (b)329,685 324,908 318,579 322,098 323,198 1 2 329,685 323,198 2 
Credit card loans141,802 132,493 144,216 140,377 141,656 7 — 141,802 141,656 — 
Wholesale loans (b)569,467 553,906 550,058 527,265 544,528 3 5 569,467 544,528 5 
Total Loans1,040,954 1,011,307 1,012,853 989,740 1,009,382 3 3 1,040,954 1,009,382 3 
Deposits:
U.S. offices:
Noninterest-bearing639,114 629,139 572,711 540,116 529,729 2 21 639,114 529,729 21 
Interest-bearing1,281,432 1,266,856 1,197,032 1,117,149 1,061,093 1 21 1,281,432 1,061,093 21 
Non-U.S. offices:
Noninterest-bearing24,723 22,661 23,435 21,406 22,752 9 9 24,723 22,752 9 
Interest-bearing359,948 359,456 351,079 322,745 317,455 — 13 359,948 317,455 13 
Total deposits2,305,217 2,278,112 2,144,257 2,001,416 1,931,029 1 19 2,305,217 1,931,029 19 
Long-term debt 299,926 279,427 281,685 279,175 317,003 7 (5)299,926 317,003 (5)
Common stockholders’ equity253,548 249,151 249,291 241,050 234,403 2 8 253,548 234,403 8 
Total stockholders’ equity286,386 280,714 279,354 271,113 264,466 2 8 286,386 264,466 8 
Loans-to-deposits ratio (b)45 %44 %47 %49 %52 %45 %52 %
Headcount260,110 259,350 255,351 256,358 256,710 — 1 260,110 256,710 1 
95% CONFIDENCE LEVEL - TOTAL VaR (c)
Average VaR$43 $106 $96 $90 $130 (59)(67)
LINE OF BUSINESS NET REVENUE (d)
Consumer & Community Banking$12,760 $12,517 $12,728 $12,895 $12,358 2 3 $25,277 $25,645 (1)
Corporate & Investment Bank13,214 14,605 11,352 11,546 16,383 (10)(19)27,819 26,386 5 
Commercial Banking2,483 2,393 2,463 2,285 2,400 4 3 4,876 4,565 7 
Asset & Wealth Management 4,107 4,077 3,867 3,554 3,430 1 20 8,184 6,819 20 
Corporate(1,169)(473)(249)(339)(754)(147)(55)(1,642)(588)(179)
TOTAL NET REVENUE$31,395 $33,119 $30,161 $29,941 $33,817 (5)(7)$64,514 $62,827 3 
LINE OF BUSINESS NET INCOME/(LOSS)
Consumer & Community Banking$5,634 $6,728 $4,325 $3,871 $(176)(16)NM$12,362 $21 NM
Corporate & Investment Bank4,985 5,740 5,349 4,309 5,451 (13)(9)10,725 7,436 44 
Commercial Banking1,420 1,168 2,034 1,086 (681)22 NM2,588 (542)NM
Asset & Wealth Management1,153 1,244 786 876 661 (7)74 2,397 1,330 80 
Corporate(1,244)(580)(358)(699)(568)(114)(119)(1,824)(693)(163)
NET INCOME$11,948 $14,300 $12,136 $9,443 $4,687 (16)155 $26,248 $7,552 248 
In the fourth quarter of 2020, payment processing-only clients along with the associated revenue and expenses were realigned to CIB’s Wholesale Payments business from CCB and CB. Prior-period amounts have been revised to conform with the current presentation. Refer to Business segment changes on page 65 of the Firm’s 2020 Form 10-K for further information.
In the fourth quarter of 2020, the Firm realigned certain wealth management clients from AWM to CCB. Prior-period amounts have been revised to conform with the current presentation. Refer to Business segment changes on page 65 of the Firm’s 2020 Form 10-K for further information.
(a)In the first quarter of 2021, the Firm reclassified certain deferred investment tax credits. Prior-period amounts have been revised to conform with the current presentation. Refer to footnote (a) on page 2 for further information.
(b)In the third quarter of 2020, the Firm reclassified certain fair value option elected lending-related positions from trading assets to loans. Prior-period amounts have been revised to conform with the current presentation.
(c)Effective July 1, 2020, the Firm refined the scope of VaR to exclude certain asset-backed fair value option elected loans, and included them in other sensitivity-based measures to more effectively measure the risk from these loans. In the absence of this refinement, the average Total VaR for the three months ended June 30, 2021, March 31, 2021, December 31, 2020 and September 30, 2020 would have been different by $(1) million, $18 million, $23 million and $12 million, respectively.
(d)Refer to Reconciliation from Reported to Managed Basis on page 7 for a further discussion of managed basis.
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JPMORGAN CHASE & CO.
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CONSOLIDATED STATEMENTS OF INCOME
(in millions, except per share and ratio data)
QUARTERLY TRENDSSIX MONTHS ENDED JUNE 30,
2Q21 Change2021 Change
REVENUE2Q211Q214Q203Q202Q201Q212Q20202120202020
Investment banking fees $3,470 $2,970 $2,583 $2,187 $2,850 17 %22 %$6,440 $4,716 37 %
Principal transactions4,076 6,500 3,321 4,142 7,621 (37)(47)10,576 10,558 — 
Lending- and deposit-related fees1,760 1,687 1,727 1,647 1,431 4 23 3,447 3,137 10 
Asset management, administration and commissions5,194 5,029 4,901 4,470 4,266 3 22 10,223 8,806 16 
Investment securities gains/(losses)(155)14 70 473 26 NMNM(141)259 NM
Mortgage fees and related income551 704 767 1,087 917 (22)(40)1,255 1,237 1 
Card income1,647 1,350 1,297 1,169 974 22 69 2,997 1,969 52 
Other income (a)1,195 1,123 1,411 1,067 1,137 6 5 2,318 2,387 (3)
Noninterest revenue17,738 19,377 16,077 16,242 19,222 (8)(8)37,115 33,069 12 
Interest income14,094 14,271 14,550 14,700 16,112 (1)(13)28,365 35,273 (20)
Interest expense1,353 1,382 1,292 1,687 2,259 (2)(40)2,735 6,981 (61)
Net interest income12,741 12,889 13,258 13,013 13,853 (1)(8)25,630 28,292 (9)
TOTAL NET REVENUE30,479 32,266 29,335 29,255 33,075 (6)(8)62,745 61,361 2 
Provision for credit losses(2,285)(4,156)(1,889)611 10,473 45 NM(6,441)18,758 NM
NONINTEREST EXPENSE
Compensation expense 9,814 10,601 7,954 8,630 9,509 (7)3 20,415 18,404 11 
Occupancy expense1,090 1,115 1,161 1,142 1,080 (2)1 2,205 2,146 3 
Technology, communications and equipment expense 2,488 2,519 2,606 2,564 2,590 (1)(4)5,007 5,168 (3)
Professional and outside services 2,385 2,203 2,259 2,178 1,999 8 19 4,588 4,027 14 
Marketing626 751 725 470 481 (17)30 1,377 1,281 7 
Other expense (b)1,264 1,536 1,343 1,891 1,283 (18)(1)2,800 2,707 3 
TOTAL NONINTEREST EXPENSE17,667 18,725 16,048 16,875 16,942 (6)4 36,392 33,733 8 
Income before income tax expense15,097 17,697 15,176 11,769 5,660 (15)167 32,794 8,870 270 
Income tax expense (a)3,149 3,397 3,040 2,326 973 (7)224 6,546 1,318 397 
NET INCOME$11,948 $14,300 $12,136 $9,443 $4,687 (16)155 $26,248 $7,552 248 
NET INCOME PER COMMON SHARE DATA
Basic earnings per share$3.79 $4.51 $3.80 $2.93 $1.39 (16)173 $8.30 $2.17 282 
Diluted earnings per share3.78 4.50 3.79 2.92 1.38 (16)174 8.28 2.17 282 
FINANCIAL RATIOS
Return on common equity (c)18 %23 %19 %15 %7 %21 %6 %
Return on tangible common equity (c)(d)23 29 24 19 9 26 7 
Return on assets (c)1.29 1.61 1.42 1.14 0.58 1.44 0.50 
Effective income tax rate (a)20.9 19.2 20.0 19.8 17.2 20.0 14.9 
Overhead ratio58 58 55 58 51 58 55 
(a)In the first quarter of 2021, the Firm reclassified certain deferred investment tax credits. Prior-period amounts have been revised to conform with the current presentation. Refer to footnote (a) on page 2 for further information.
(b)Included Firmwide legal expense of $185 million, $28 million, $276 million, $524 million and $118 million for the three months ended June 30, 2021, March 31, 2021, December 31, 2020, September 30, 2020 and June 30, 2020, respectively, and $213 million and $315 million for the six months ended June 30, 2021 and June 30, 2020 respectively.
(c)Quarterly ratios are based upon annualized amounts.
(d)Refer to page 28 for further discussion of ROTCE.



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JPMORGAN CHASE & CO.
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CONSOLIDATED BALANCE SHEETS
(in millions)
Jun 30, 2021
Change
Jun 30,Mar 31,Dec 31,Sep 30,Jun 30,Mar 31,Jun 30,
2021202120202020202020212020
ASSETS
Cash and due from banks $26,592 $25,397 $24,874 $20,816 $20,544 5 %29 %
Deposits with banks 678,829 685,675 502,735 466,706 473,185 (1)43 
Federal funds sold and securities purchased under
resale agreements260,987 272,481 296,284 319,849 256,980 (4)2 
Securities borrowed186,376 179,516 160,635 142,441 142,704 4 31 
Trading assets:
Debt and equity instruments (a)449,877 470,933 423,496 429,196 416,870 (4)8 
Derivative receivables70,711 73,119 79,630 76,626 74,846 (3)(6)
Available-for-sale (“AFS”) securities232,161 379,942 388,178 389,583 485,883 (39)(52)
Held-to-maturity (”HTM”) securities, net of allowance for credit losses341,476 217,452 201,821 141,553 72,908 57 368 
Investment securities, net of allowance for credit losses (b)573,637 597,394 589,999 531,136 558,791 (4)3 
Loans (a)1,040,954 1,011,307 1,012,853 989,740 1,009,382 3 3 
Less: Allowance for loan losses19,500 23,001 28,328 30,814 31,591 (15)(38)
Loans, net of allowance for loan losses1,021,454 988,306 984,525 958,926 977,791 3 4 
Accrued interest and accounts receivable125,253 114,754 90,503 76,945 72,260 9 73 
Premises and equipment26,631 26,926 27,109 26,672 26,301 (1)1 
Goodwill, MSRs and other intangible assets54,655 54,588 53,428 51,594 51,669 — 6 
Other assets (a)(c)209,254 200,247 151,539 144,154 140,702 4 49 
TOTAL ASSETS$3,684,256 $3,689,336 $3,384,757 $3,245,061 $3,212,643 — 15 
LIABILITIES
Deposits$2,305,217 $2,278,112 $2,144,257 $2,001,416 $1,931,029 1 19 
Federal funds purchased and securities loaned or sold
under repurchase agreements245,437 304,019 215,209 236,440 235,647 (19)4 
Short-term borrowings51,938 54,978 45,208 41,992 48,014 (6)8 
Trading liabilities:
Debt and equity instruments127,822 130,909 99,558 104,835 107,735 (2)19 
Derivative payables56,045 60,440 70,623 57,658 57,477 (7)(2)
Accounts payable and other liabilities (c)297,082 285,066 231,285 233,241 230,444 4 29 
Beneficial interests issued by consolidated VIEs14,403 15,671 17,578 19,191 20,828 (8)(31)
Long-term debt299,926 279,427 281,685 279,175 317,003 7 (5)
TOTAL LIABILITIES3,397,870 3,408,622 3,105,403 2,973,948 2,948,177 — 15 
STOCKHOLDERS’ EQUITY
Preferred stock32,838 31,563 30,063 30,063 30,063 4 9 
Common stock4,105 4,105 4,105 4,105 4,105 — — 
Additional paid-in capital88,194 88,005 88,394 88,289 88,125 — — 
Retained earnings256,983 248,151 236,990 228,014 221,732 4 16 
Accumulated other comprehensive income/(loss)2,570 1,041 7,986 8,940 8,789 147 (71)
Shares held in RSU Trust, at cost— — — (11)(11)— NM
Treasury stock, at cost(98,304)(92,151)(88,184)(88,287)(88,337)(7)(11)
TOTAL STOCKHOLDERS’ EQUITY286,386 280,714 279,354 271,113 264,466 2 8 
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY$3,684,256 $3,689,336 $3,384,757 $3,245,061 $3,212,643 — 15 
(a)In the third quarter of 2020, the Firm reclassified certain fair value option elected lending-related positions from trading assets to loans and other assets. Prior-period amounts have been revised to conform with the current presentation.
(b)At June 30, 2021, March 31, 2021, December 31, 2020, September 30, 2020 and June 30, 2020, the allowance for credit losses on investment securities was $87 million, $94 million, $78 million, $120 million and $23 million, respectively.
(c)In the first quarter of 2021, the Firm reclassified certain deferred investment tax credits. Prior-period amounts have been revised to conform with the current presentation. Refer to footnote (a) on page 2 for further information.

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JPMORGAN CHASE & CO.
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CONDENSED AVERAGE BALANCE SHEETS AND ANNUALIZED YIELDS
(in millions, except rates)
QUARTERLY TRENDSSIX MONTHS ENDED JUNE 30,
2Q21 Change2021 Change
AVERAGE BALANCES 2Q211Q214Q203Q202Q201Q212Q20202120202020
ASSETS
Deposits with banks $721,214 $631,606 $507,194 $509,979 $477,895 14 %51 %$676,658 $378,821 79 %
Federal funds sold and securities purchased under resale agreements255,831 289,763 327,504 277,899 244,306 (12)5 272,704 248,855 10 
Securities borrowed190,785 175,019 149,146 147,184 141,328 9 35 182,945 138,728 32 
Trading assets - debt instruments (a)277,024 322,648 319,585 322,321 345,073 (14)(20)299,710 324,940 (8)
Investment securities585,084 582,460 568,354 548,544 500,254 — 17 583,779 460,891 27 
Loans (a)1,024,633 1,013,524 996,367 991,241 1,029,513 1 — 1,019,109 1,015,509 — 
All other interest-earning assets (a)(b)122,624 111,549 87,496 77,806 81,320 10 51 117,117 74,875 56 
Total interest-earning assets 3,177,195 3,126,569 2,955,646 2,874,974 2,819,689 2 13 3,152,022 2,642,619 19 
Trading assets - equity and other instruments 195,038 159,727 138,477 119,905 99,115 22 97 177,480 106,797 66 
Trading assets - derivative receivables74,462 79,013 79,300 81,300 79,298 (6)(6)76,725 72,803 5 
All other noninterest-earning assets (a)(c)281,992 247,532 225,290 212,939 230,227 14 22 264,857 236,607 12 
TOTAL ASSETS$3,728,687 $3,612,841 $3,398,713 $3,289,118 $3,228,329 3 15 $3,671,084 $3,058,826 20 
LIABILITIES
Interest-bearing deposits $1,669,376 $1,610,467 $1,529,066 $1,434,034 $1,375,213 4 21 $1,640,085 $1,295,884 27 
Federal funds purchased and securities loaned or
sold under repurchase agreements261,343 301,386 247,276 253,779 276,815 (13)(6)281,254 260,368 8 
Short-term borrowings (d)46,185 42,031 36,183 36,697 45,297 10 2 44,120 41,292 7 
Trading liabilities - debt and all other interest-bearing liabilities (e)246,666 230,922 213,989 206,643 207,322 7 19 238,836 200,138 19 
Beneficial interests issued by consolidated VIEs15,117 17,185 18,647 19,838 20,331 (12)(26)16,145 19,189 (16)
Long-term debt 248,552 239,398 237,144 267,175 269,336 4 (8)244,000 256,666 (5)
Total interest-bearing liabilities 2,487,239 2,441,389 2,282,305 2,218,166 2,194,314 2 13 2,464,440 2,073,537 19 
Noninterest-bearing deposits 654,419 614,165 582,517 551,565 515,304 7 27 634,403 467,467 36 
Trading liabilities - equity and other instruments 35,397 35,029 33,732 32,256 33,797 1 5 35,214 32,259 9 
Trading liabilities - derivative payables62,533 67,960 63,551 64,599 63,178 (8)(1)65,231 59,084 10 
All other noninterest-bearing liabilities (c)205,584 178,444 164,873 155,672 157,265 15 31 192,091 162,276 18 
TOTAL LIABILITIES3,445,172 3,336,987 3,126,978 3,022,258 2,963,858 3 16 3,391,379 2,794,623 21 
Preferred stock32,666 30,312 30,063 30,063 30,063 8 9 31,496 29,734 6 
Common stockholders’ equity250,849 245,542 241,672 236,797 234,408 2 7 248,209 234,469 6 
TOTAL STOCKHOLDERS’ EQUITY283,515 275,854 271,735 266,860 264,471 3 7 279,705 264,203 6 
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY$3,728,687 $3,612,841 $3,398,713 $3,289,118 $3,228,329 3 15 $3,671,084 $3,058,826 20 
AVERAGE RATES (f)
INTEREST-EARNING ASSETS
Deposits with banks 0.06 %0.04 %0.03 %0.05 %0.06 %0.05 %0.34 %
Federal funds sold and securities purchased under resale agreements0.27 0.33 0.41 0.57 0.99 0.30 1.37 
Securities borrowed (g)(0.19)(0.18)(0.40)(0.35)(0.50)(0.18)(0.03)
Trading assets - debt instruments (a)2.49 2.25 2.32 2.29 2.42 2.36 2.57 
Investment securities1.31 1.36 1.39 1.58 2.03 1.34 2.24 
Loans (a)3.98 4.09 4.14 4.11 4.27 4.04 4.61 
All other interest-earning assets (a)(b)0.66 0.72 0.89 0.94 0.99 0.69 1.73 
Total interest-earning assets 1.79 1.87 1.97 2.05 2.31 1.83 2.70 
INTEREST-BEARING LIABILITIES
Interest-bearing deposits 0.03 0.04 0.05 0.07 0.10 0.03 0.30 
Federal funds purchased and securities loaned or
sold under repurchase agreements0.09 0.02 0.06 0.17 0.19 0.05 0.71 
Short-term borrowings (d)0.30 0.31 0.40 0.65 1.11 0.31 1.34 
Trading liabilities - debt and all other interest-bearing liabilities (e)(g)0.08 0.05 (0.15)(0.10)(0.08)0.07 0.33 
Beneficial interests issued by consolidated VIEs0.55 0.64 0.65 0.71 1.15 0.60 1.56 
Long-term debt 1.70 1.92 1.82 1.93 2.45 1.81 2.65 
Total interest-bearing liabilities 0.22 0.23 0.23 0.30 0.41 0.22 0.68 
INTEREST RATE SPREAD1.57 %1.64 %1.74 %1.75 %1.90 %1.61 %2.02 %
NET YIELD ON INTEREST-EARNING ASSETS1.62 %1.69 %1.80 %1.82 %1.99 %1.65 %2.17 %
Memo: Net yield on interest-earning assets excluding CIB Markets (h)1.90 %1.93 %2.01 %2.05 %2.27 %1.92 %2.61 %
(a)    In the third quarter of 2020, the Firm reclassified certain fair value option elected lending-related positions from trading assets to loans and other assets. Prior-period amounts have been revised to conform with the current presentation.
(b)    Includes brokerage-related held-for-investment customer receivables, which are classified in accrued interest and accounts receivable, and all other interest-earning assets, which are classified in other assets on the Consolidated Balance Sheets.
(c)    In the first quarter of 2021, the Firm reclassified certain deferred investment tax credits. Prior-period amounts have been revised to conform with the current presentation. Refer to footnote (a) on page 2 for further information.
(d)    Includes commercial paper.
(e)    All other interest-bearing liabilities include brokerage-related customer payables.
(f)    Interest includes the effect of related hedging derivatives. Taxable-equivalent amounts are used where applicable.
(g)    Negative interest income and yields are related to the impact of current interest rates combined with the fees paid on client-driven securities borrowed balances. The negative interest expense related to prime brokerage customer payables is recognized in interest expense and reported within trading liabilities - debt and all other liabilities.
(h)    Net yield on interest-earning assets excluding CIB Markets is a non-GAAP financial measure. Refer to page 28 for a further discussion of this measure.

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RECONCILIATION FROM REPORTED TO MANAGED BASIS
(in millions, except ratios)
The Firm prepares its Consolidated Financial Statements using accounting principles generally accepted in the U.S. (“U.S. GAAP”). That presentation, which is referred to as “reported” basis, provides the reader with an understanding of the Firm’s results that can be tracked consistently from year-to-year and enables a comparison of the Firm’s performance with other companies’ U.S. GAAP financial statements. In addition to analyzing the Firm’s results on a reported basis, management reviews Firmwide results, including the overhead ratio, on a “managed” basis; these Firmwide managed basis results are non-GAAP financial measures. The Firm also reviews the results of the lines of business on a managed basis. Refer to the notes on Non-GAAP Financial Measures on page 28 for additional information on managed basis.

The following summary table provides a reconciliation from reported U.S. GAAP results to managed basis.
QUARTERLY TRENDSSIX MONTHS ENDED JUNE 30,
2Q21 Change2021 Change
2Q211Q214Q203Q202Q201Q212Q20202120202020
OTHER INCOME
Other income - reported (a)$1,195 $1,123 $1,411 $1,067 $1,137 6 %5 %$2,318 $2,387 (3)%
Fully taxable-equivalent adjustments (a)(b)807 744 729 582 635 8 27 1,551 1,249 24 
Other income - managed$2,002 $1,867 $2,140 $1,649 $1,772 7 13 $3,869 $3,636 6 
TOTAL NONINTEREST REVENUE
Total noninterest revenue - reported$17,738 $19,377 $16,077 $16,242 $19,222 (8)(8)$37,115 $33,069 12 
Fully taxable-equivalent adjustments807 744 729 582 635 8 27 1,551 1,249 24 
Total noninterest revenue - managed$18,545 $20,121 $16,806 $16,824 $19,857 (8)(7)$38,666 $34,318 13 
NET INTEREST INCOME
Net interest income - reported$12,741 $12,889 $13,258 $13,013 $13,853 (1)(8)$25,630 $28,292 (9)
Fully taxable-equivalent adjustments (b)109 109 97 104 107 — 2 218 217 — 
Net interest income - managed$12,850 $12,998 $13,355 $13,117 $13,960 (1)(8)$25,848 $28,509 (9)
TOTAL NET REVENUE
Total net revenue - reported$30,479 $32,266 $29,335 $29,255 $33,075 (6)(8)$62,745 $61,361 2 
Fully taxable-equivalent adjustments916 853 826 686 742 7 23 1,769 1,466 21 
Total net revenue - managed$31,395 $33,119 $30,161 $29,941 $33,817 (5)(7)$64,514 $62,827 3 
PRE-PROVISION PROFIT
Pre-provision profit - reported$12,812 $13,541 $13,287 $12,380 $16,133 (5)(21)$26,353 $27,628 (5)
Fully taxable-equivalent adjustments916 853 826 686 742 7 23 1,769 1,466 21 
Pre-provision profit - managed$13,728 $14,394 $14,113 $13,066 $16,875 (5)(19)$28,122 $29,094 (3)
INCOME BEFORE INCOME TAX EXPENSE
Income before income tax expense - reported$15,097 $17,697 $15,176 $11,769 $5,660 (15)167 $32,794 $8,870 270 
Fully taxable-equivalent adjustments916 853 826 686 742 7 23 1,769 1,466 21 
Income before income tax expense - managed$16,013 $18,550 $16,002 $12,455 $6,402 (14)150 $34,563 $10,336 234 
INCOME TAX EXPENSE
Income tax expense - reported (a)$3,149 $3,397 $3,040 $2,326 $973 (7)224 $6,546 $1,318 397 
Fully taxable-equivalent adjustments (a)(b)916 853 826 686 742 7 23 1,769 1,466 21 
Income tax expense - managed$4,065 $4,250 $3,866 $3,012 $1,715 (4)137 $8,315 $2,784 199 
OVERHEAD RATIO
Overhead ratio - reported58 %58 %55 %58 %51 %58 %55 %
Overhead ratio - managed56 57 53 56 50 56 54 
(a)In the first quarter of 2021, the Firm reclassified certain deferred investment tax credits. Prior-period amounts have been revised to conform with the current presentation. Refer to footnote (a) on page 2 for further information.
(b)Predominantly recognized in CIB, CB and Corporate.
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SEGMENT RESULTS - MANAGED BASIS
(in millions)
QUARTERLY TRENDSSIX MONTHS ENDED JUNE 30,
2Q21 Change2021 Change
2Q211Q214Q203Q202Q201Q212Q20202120202020
TOTAL NET REVENUE (fully taxable-equivalent (“FTE”))
Consumer & Community Banking$12,760 $12,517 $12,728 $12,895 $12,358 2 %3 %$25,277 $25,645 (1)%
Corporate & Investment Bank 13,214 14,605 11,352 11,546 16,383 (10)(19)27,819 26,386 5 
Commercial Banking2,483 2,393 2,463 2,285 2,400 4 3 4,876 4,565 7 
Asset & Wealth Management 4,107 4,077 3,867 3,554 3,430 1 20 8,184 6,819 20 
Corporate(1,169)(473)(249)(339)(754)(147)(55)(1,642)(588)(179)
TOTAL NET REVENUE$31,395 $33,119 $30,161 $29,941 $33,817 (5)(7)$64,514 $62,827 3 
TOTAL NONINTEREST EXPENSE
Consumer & Community Banking$7,062 $7,202 $7,042 $6,912 $6,767 (2)4 $14,264 $14,036 2 
Corporate & Investment Bank6,523 7,104 4,939 5,832 6,812 (8)(4)13,627 12,767 7 
Commercial Banking981 969 950 969 893 1 10 1,950 1,879 4 
Asset & Wealth Management2,586 2,574 2,756 2,443 2,323 — 11 5,160 4,758 8 
Corporate515 876 361 719 147 (41)250 1,391 293 375 
TOTAL NONINTEREST EXPENSE$17,667 $18,725 $16,048 $16,875 $16,942 (6)4 $36,392 $33,733 8 
PRE-PROVISION PROFIT/(LOSS)
Consumer & Community Banking$5,698 $5,315 $5,686 $5,983 $5,591 7 2 $11,013 $11,609 (5)
Corporate & Investment Bank6,691 7,501 6,413 5,714 9,571 (11)(30)14,192 13,619 4 
Commercial Banking1,502 1,424 1,513 1,316 1,507 5 — 2,926 2,686 9 
Asset & Wealth Management1,521 1,503 1,111 1,111 1,107 1 37 3,024 2,061 47 
Corporate(1,684)(1,349)(610)(1,058)(901)(25)(87)(3,033)(881)(244)
PRE-PROVISION PROFIT$13,728 $14,394 $14,113 $13,066 $16,875 (5)(19)$28,122 $29,094 (3)
PROVISION FOR CREDIT LOSSES
Consumer & Community Banking$(1,868)$(3,602)$(83)$795 $5,828 48 NM$(5,470)$11,600 NM
Corporate & Investment Bank(79)(331)(581)(81)1,987 76 NM(410)3,388 NM
Commercial Banking(377)(118)(1,181)(147)2,431 (219)NM(495)3,441 NM
Asset & Wealth Management(10)(121)(2)(52)223 92 NM(131)317 NM
Corporate49 16 (42)96 4 206 NM65 12 442 
PROVISION FOR CREDIT LOSSES$(2,285)$(4,156)$(1,889)$611 $10,473 45 NM$(6,441)$18,758 NM
NET INCOME/(LOSS)
Consumer & Community Banking$5,634 $6,728 $4,325 $3,871 $(176)(16)NM$12,362 $21 NM
Corporate & Investment Bank4,985 5,740 5,349 4,309 5,451 (13)(9)10,725 7,436 44 
Commercial Banking1,420 1,168 2,034 1,086 (681)22 NM2,588 (542)NM
Asset & Wealth Management1,153 1,244 786 876 661 (7)74 2,397 1,330 80 
Corporate(1,244)(580)(358)(699)(568)(114)(119)(1,824)(693)(163)
TOTAL NET INCOME$11,948 $14,300 $12,136 $9,443 $4,687 (16)155 $26,248 $7,552 248 
In the fourth quarter of 2020, payment processing-only clients along with the associated revenue and expenses were realigned to CIB’s Wholesale Payments business from CCB and CB. Prior-period amounts have been revised to conform with the current presentation. Refer to Business segment changes on page 65 of the Firm’s 2020 Form 10-K for further information.
In the fourth quarter of 2020, the Firm realigned certain wealth management clients from AWM to CCB. Prior-period amounts have been revised to conform with the current presentation. Refer to Business segment changes on page 65 of the Firm’s 2020 Form 10-K for further information.
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CAPITAL AND OTHER SELECTED BALANCE SHEET ITEMS
(in millions, except ratio data)
Jun 30, 2021
ChangeSIX MONTHS ENDED JUNE 30,
Jun 30,Mar 31,Dec 31,Sep 30,Jun 30,Mar 31,Jun 30,2021 Change
2021202120202020202020212020202120202020
CAPITAL (a)
Risk-based capital metrics
Standardized
CET1 capital$209,030 (e)$206,078 $205,078 $197,719 $190,867 1 %10 %
Tier 1 capital241,379 (e)237,333 234,844 227,486 220,674 2 9 
Total capital274,468 (e)271,407 269,923 262,397 256,667 1 7 
Risk-weighted assets 1,602,908 (e)1,577,007 1,560,609 1,514,509 1,541,365 2 4 
CET1 capital ratio13.0 %(e)13.1 %13.1 %13.1 %12.4 %
Tier 1 capital ratio15.1 (e)15.0 15.0 15.0 14.3 
Total capital ratio17.1 (e)17.2 17.3 17.3 16.7 
Advanced
CET1 capital$209,030 (e)$206,078 $205,078 $197,719 $190,867 1 10 
Tier 1 capital 241,379 (e)237,333 234,844 227,486 220,674 2 9 
Total capital262,389 (e)258,635 257,228 249,947 244,112 1 7 
Risk-weighted assets1,514,801 (e)1,503,828 1,484,431 1,429,334 1,450,587 1 4 
CET1 capital ratio13.8 %(e)13.7 %13.8 %13.8 %13.2 %
Tier 1 capital ratio15.9 (e)15.8 15.8 15.9 15.2 
Total capital ratio17.3 (e)17.2 17.3 17.5 16.8 
Leverage-based capital metrics
Adjusted average assets (b)$3,680,851 (e)$3,565,545 $3,353,319 $3,243,290 $3,176,729 3 16 
Tier 1 leverage ratio6.6 %(e)6.7 %7.0 %7.0 %6.9 %
Total leverage exposure4,456,413 (e)3,522,629 3,401,542 3,247,392 3,228,424 27 38 
SLR5.4 %(e)6.7 %6.9 %7.0 %6.8 %
TANGIBLE COMMON EQUITY (period-end) (c)
Common stockholders’ equity$253,548 $249,151 $249,291 $241,050 $234,403 2 8 
Less: Goodwill49,256 49,243 49,248 47,819 47,811 — 3 
Less: Other intangible assets850 875 904 759 778 (3)9 
Add: Certain deferred tax liabilities (d)2,461 2,457 2,453 2,405 2,397 — 3 
Total tangible common equity$205,903 $201,490 $201,592 $194,877 $188,211 2 9 
TANGIBLE COMMON EQUITY (average) (c) 
Common stockholders’ equity$250,849 $245,542 $241,672 $236,797 $234,408 2 7 $248,209 $234,469 6 %
Less: Goodwill49,260 49,249 47,842 47,820 47,805 — 3 49,254 47,808 3 
Less: Other intangible assets864 891 752 769 791 (3)9 877 802 9 
Add: Certain deferred tax liabilities (d)2,459 2,455 2,416 2,401 2,393 — 3 2,457 2,388 3 
Total tangible common equity$203,184 $197,857 $195,494 $190,609 $188,205 3 8 $200,535 $188,247 7 
INTANGIBLE ASSETS (period-end)
Goodwill$49,256 $49,243 $49,248 $47,819 $47,811 — 3 
Mortgage servicing rights4,549 4,470 3,276 3,016 3,080 2 48 
Other intangible assets850 875 904 759 778 (3)9 
Total intangible assets$54,655 $54,588 $53,428 $51,594 $51,669 — 6 
(a)The capital metrics reflect the relief provided by the Federal Reserve Board in response to the COVID-19 pandemic, including the CECL capital transition provisions that became effective in the first quarter of 2020. For the periods ended June 30, 2021, March 31, 2021, December 31, 2020, September 30, 2020 and June 30, 2020, the impact of the CECL capital transition provisions resulted in an increase to CET1 capital of $3.8 billion, $4.5 billion, $5.7 billion, $6.4 billion and $6.5 billion, respectively. The SLR prior to the periods ended June 30, 2021 reflects the temporary exclusions of U.S. Treasury securities and deposits at Federal Reserve Banks, which became effective April 1, 2020 and remained in effect through March 31, 2021. Refer to Capital Risk Management on pages 36-41 of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2021 for additional information on the Firm’s capital metrics. Refer to Regulatory Developments Relating to the COVID-19 Pandemic on pages 52-53 and Capital Risk Management on pages 91-101 of the Firm’s 2020 Form 10-K for additional information.
(b)Adjusted average assets, for purposes of calculating the leverage ratios, includes total quarterly average assets adjusted for on-balance sheet assets that are subject to deduction from Tier 1 capital, predominantly goodwill and other intangible assets.
(c)Refer to page 28 for further discussion of TCE.
(d)Represents deferred tax liabilities related to tax-deductible goodwill and to identifiable intangibles created in nontaxable transactions, which are netted against goodwill and other intangibles when calculating TCE.
(e)Estimated.
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EARNINGS PER SHARE AND RELATED INFORMATION
(in millions, except per share and ratio data) 
QUARTERLY TRENDSSIX MONTHS ENDED JUNE 30,
2Q21 Change2021 Change
2Q211Q214Q203Q202Q201Q212Q20202120202020
EARNINGS PER SHARE
Basic earnings per share
Net income$11,948 $14,300 $12,136 $9,443 $4,687 (16)%155 %$26,248 $7,552 248 %
Less: Preferred stock dividends393 379 380 381 401 4 (2)772 822 (6)
Net income applicable to common equity11,555 13,921 11,756 9,062 4,286 (17)170 25,476 6,730 279 
Less: Dividends and undistributed earnings allocated to
participating securities59 70 57 47 21 (16)181 130 32 306 
Net income applicable to common stockholders$11,496 $13,851 $11,699 $9,015 $4,265 (17)170 $25,346 $6,698 278 
Total weighted-average basic shares outstanding3,036.6 3,073.5 3,079.7 3,077.8 3,076.3 (1)(1)3,054.9 3,086.1 (1)
Net income per share$3.79 $4.51 $3.80 $2.93 $1.39 (16)173 $8.30 $2.17 282 
Diluted earnings per share
Net income applicable to common stockholders$11,496 $13,851 $11,699 $9,015 $4,265 (17)170 $25,346 $6,698 278 
Total weighted-average basic shares outstanding3,036.6 3,073.5 3,079.7 3,077.8 3,076.3 (1)(1)3,054.9 3,086.1 (1)
Add: Dilutive impact of stock appreciation rights (“SARs”) and
    employee stock options, unvested performance share units
    (“PSUs”) and nondividend-earning restricted stock units
    (“RSUs”)		5.3 5.4 5.4 5.0 4.7 (2)13 5.4 4.7 15 
Total weighted-average diluted shares outstanding3,041.9 3,078.9 3,085.1 3,082.8 3,081.0 (1)(1)3,060.3 3,090.8 (1)
Net income per share$3.78 $4.50 $3.79 $2.92 $1.38 (16)174 $8.28 $2.17 282 
COMMON DIVIDENDS
Cash dividends declared per share$0.90 $0.90 $0.90 $0.90 $0.90 — — $1.80 $1.80 — 
Dividend payout ratio24 %20 %24 %31 %65 %22 %83 %
COMMON SHARE REPURCHASE PROGRAM (a)
Total shares of common stock repurchased39.5 34.7 — — — 14 NM74.2 50.0 48 
Average price paid per share of common stock$156.83 $144.25 $— $— $— 9 NM$150.95 $127.92 18 
Aggregate repurchases of common stock6,201 4,999 — — — 24 NM11,200 6,397 75 
EMPLOYEE ISSUANCE
Shares issued from treasury stock related to employee
stock-based compensation awards and employee stock
purchase plans0.6 12.3 1.5 0.6 0.8 (95)(25)12.9 13.8 (7)
Net impact of employee issuances on stockholders’ equity (b)$276 $667 $217 $263 $325 (59)(15)$943 $723 30 
(a)On March 15, 2020, in response to the economic disruptions caused by the COVID-19 pandemic, the Firm temporarily suspended repurchases of its common stock. Subsequently, the Federal Reserve directed all large banks, including the Firm, to discontinue net share repurchases through the end of 2020. On December 18, 2020, the Federal Reserve announced that all large banks, including the Firm, could resume share repurchases commencing in the first quarter of 2021, subject to certain restrictions; the restrictions were extended and expired at the end of the second quarter of 2021. The Firm’s Board of Directors authorized a new common share repurchase program for up to $30 billion.
(b)The net impact of employee issuances on stockholders’ equity is driven by the cost of equity compensation awards that is recognized over the applicable vesting periods. The cost is partially offset by tax impacts related to the distribution of shares and the exercise of employee stock options and SARs.

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CONSUMER & COMMUNITY BANKING
FINANCIAL HIGHLIGHTS
(in millions, except ratio data)
QUARTERLY TRENDSSIX MONTHS ENDED JUNE 30,
2Q21 Change2021 Change
2Q211Q214Q203Q202Q201Q212Q20202120202020
INCOME STATEMENT
REVENUE
Lending- and deposit-related fees$753 $742 $806 $771 $617 1 %22 %$1,495 $1,589 (6)%
Asset management, administration and commissions866 805 735 703 634 8 37 1,671 1,342 25 
Mortgage fees and related income548 703 766 1,076 917 (22)(40)1,251 1,237 1 
Card income1,238 999 923 826 667 24 86 2,237 1,319 70 
All other income1,321 1,339 1,328 1,487 1,387 (1)(5)2,660 2,832 (6)
Noninterest revenue4,726 4,588 4,558 4,863 4,222 3 12 9,314 8,319 12 
Net interest income8,034 7,929 8,170 8,032 8,136 1 (1)15,963 17,326 (8)
TOTAL NET REVENUE12,760 12,517 12,728 12,895 12,358 2 3 25,277 25,645 (1)
Provision for credit losses(1,868)(3,602)(83)795 5,828 48NM(5,470)11,600 NM
NONINTEREST EXPENSE
Compensation expense2,977 2,976 2,734 2,804 2,694 — 11 5,953 5,476 9 
Noncompensation expense (a)4,085 4,226 4,308 4,108 4,073 (3)— 8,311 8,560 (3)
TOTAL NONINTEREST EXPENSE7,062 7,202 7,042 6,912 6,767 (2)4 14,264 14,036 2 
Income/(loss) before income tax expense/(benefit)7,566 8,917 5,769 5,188 (237)(15)NM16,483 9 NM
Income tax expense/(benefit)1,932 2,189 1,444 1,317 (61)(12)NM4,121 (12)NM
NET INCOME/(LOSS)$5,634 $6,728 $4,325 $3,871 $(176)(16)NM$12,362 $21 NM
REVENUE BY LINE OF BUSINESS
Consumer & Business Banking$6,016 $5,635 $5,744 $5,697 $5,248 7 15 $11,651 $11,514 1 
Home Lending1,349 1,458 1,456 1,714 1,687 (7)(20)2,807 2,848 (1)
Card & Auto 5,395 5,424 5,528 5,484 5,423 (1)(1)10,819 11,283 (4)
MORTGAGE FEES AND RELATED INCOME DETAILS
Production revenue517 757 803 765 742 (32)(30)1,274 1,061 20 
Net mortgage servicing revenue (b)31 (54)(37)311 175 NM(82)(23)176 NM
Mortgage fees and related income$548 $703 $766 $1,076 $917 (22)(40)$1,251 $1,237 1 
FINANCIAL RATIOS
ROE44 %54 %32 %29 %(2)%49 %(1)%
Overhead ratio 55 58 55 54 55 56 55 
In the fourth quarter of 2020, payment processing-only clients along with the associated revenue and expenses were realigned to CIB’s Wholesale Payments business from CCB and CB. Prior-period amounts have been revised to conform with the current presentation. Refer to Business segment changes on page 65 of the Firm’s 2020 Form 10-K for further information.
In the fourth quarter of 2020, the Firm realigned certain wealth management clients from AWM to CCB. Prior-period amounts have been revised to conform with the current presentation. Refer to Business segment changes on page 65 of the Firm’s 2020 Form 10-K for further information.
(a)Included depreciation expense on leased assets of $856 million, $916 million, $975 million, $1.0 billion and $1.1 billion for the three months ended June 30, 2021, March 31, 2021, December 31, 2020, September 30, 2020 and June 30, 2020, respectively, and $1.8 billion and $2.2 billion for the six months ended June 30, 2021 and 2020, respectively.
(b)Included MSR risk management results of $(103) million, $(115) million, $(152) million, $145 million and $79 million for the three months ended June 30, 2021, March 31, 2021, December 31, 2020, September 30, 2020 and June 30, 2020, respectively, and $(218) million and $(11) million for the six months ended June 30, 2021 and 2020, respectively.
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CONSUMER & COMMUNITY BANKING
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except headcount data)
QUARTERLY TRENDSSIX MONTHS ENDED JUNE 30,
2Q21 Change2021 Change
2Q211Q214Q203Q202Q201Q212Q20202120202020
SELECTED BALANCE SHEET DATA (period-end)
Total assets$494,305 $487,978 $496,705 (e)$487,063 (e)$498,658 (e)1 %(1)%$494,305 $498,658 (e)(1)%
Loans:
Consumer & Business Banking (a)46,228 52,654 48,810 49,646 49,305 (12)(6)46,228 49,305 (6)
Home Lending (b)(c)179,371 178,776 182,121 188,561 195,664 — (8)179,371 195,664 (8)
Card 141,802 132,493 144,216 140,377 141,656 7 — 141,802 141,656 — 
Auto 67,598 67,662 66,432 62,304 59,287 — 14 67,598 59,287 14 
Total loans 434,999 431,585 441,579 440,888 445,912 1 (2)434,999 445,912 (2)
Deposits1,056,507 1,037,903 958,706 909,198 885,535 2 19 1,056,507 885,535 19 
Equity50,000 50,000 52,000 52,000 52,000 — (4)50,000 52,000 (4)
SELECTED BALANCE SHEET DATA (average)
Total assets$485,209 $484,524 $486,272 (e)$490,094 (e)$504,571 (e)— (4)$484,868 $515,133 (e)(6)
Loans:
Consumer & Business Banking 49,356 49,868 49,506 49,596 43,442 (1)14 49,611 36,506 36 
Home Lending (b)(d)177,444 182,247 185,733 192,172 199,532 (3)(11)179,832 205,434 (12)
Card 136,149 134,884 141,236 140,386 142,377 1 (4)135,520 152,518 (11)
Auto 67,183 66,960 64,342 60,345 60,306 — 11 67,072 60,599 11 
Total loans430,132 433,959 440,817 442,499 445,657 (1)(3)432,035 455,057 (5)
Deposits1,047,771 979,686 928,518 895,535 840,467 7 25 1,013,917 790,088 28 
Equity50,000 50,000 52,000 52,000 52,000 — (4)50,000 52,000 (4)
Headcount125,300 126,084 122,894 122,905 123,765 (1)1 125,300 123,765 1 
In the fourth quarter of 2020, payment processing-only clients along with the associated revenue and expenses were realigned to CIB’s Wholesale Payments business from CCB and CB. Prior-period amounts have been revised to conform with the current presentation. Refer to Business segment changes on page 65 of the Firm’s 2020 Form 10-K for further information.
In the fourth quarter of 2020, the Firm realigned certain wealth management clients from AWM to CCB. Prior-period amounts have been revised to conform with the current presentation. Refer to Business segment changes on page 65 of the Firm’s 2020 Form 10-K for further information.
(a)At June 30, 2021, March 31, 2021, December 31, 2020, September 30, 2020 and June 30, 2020 included $16.7 billion, $23.4 billion, $19.2 billion, $20.3 billion and $19.9 billion of loans, respectively, in Business Banking under the Paycheck Protection Program (“PPP”). Refer to page 113 of the Firm’s 2020 Form 10-K for further information on the PPP.
(b)In the third quarter of 2020, the Firm reclassified certain fair value option elected lending-related positions from trading assets to loans. Prior-period amounts have been revised to conform with the current presentation.
(c)At June 30, 2021, March 31, 2021, December 31, 2020, September 30, 2020 and June 30, 2020, Home Lending loans held-for-sale and loans at fair value were $16.5 billion, $13.2 billion, $9.7 billion, $10.0 billion and $8.6 billion, respectively.
(d)Average Home Lending loans held-for sale and loans at fair value were $14.2 billion, $12.5 billion, $10.7 billion, $9.2 billion and $8.7 billion for the three months ended June 30, 2021, March 31, 2021, December 31, 2020, September 30, 2020 and June 30, 2020, respectively, and $13.3 billion and $12.2 billion for the six months ended June 30, 2021 and 2020, respectively.
(e)Prior-period amounts have been revised to conform with the current presentation.
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CONSUMER & COMMUNITY BANKING
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except ratio data)QUARTERLY TRENDSSIX MONTHS ENDED JUNE 30,
2Q21 Change2021 Change
2Q211Q214Q203Q202Q201Q212Q20202120202020
CREDIT DATA AND QUALITY STATISTICS
Nonaccrual loans (a)(b)(c)(d)$5,256 $5,507 $5,492 $5,144 $4,422 (5)%19 %$5,256 $4,422 19 %
Net charge-offs/(recoveries)
Consumer & Business Banking72 65 75 54 60 11 20 137 134 2 
Home Lending(79)(51)(50)8 (5)(55)NM(130)(127)(2)
Card755 983 767 1,028 1,178 (23)(36)1,738 2,491 (30)
Auto(16)26 25 5 45 NMNM10 93 (89)
Total net charge-offs/(recoveries)$732 $1,023 $817 $1,095 $1,278 (28)(43)$1,755 $2,591 (32)
Net charge-off/(recovery) rate
Consumer & Business Banking (e)0.59 %0.53 %0.60 %0.43 %0.56 %0.56 %0.74 %
Home Lending(0.19)(0.12)(0.11)0.02 (0.01)(0.16)(0.13)
Card2.24 2.97 2.17 2.92 3.33 2.60 3.28 
Auto (0.10)0.16 0.15 0.03 0.30 0.03 0.31 
Total net charge-off/(recovery) rate0.71 0.99 0.76 1.01 1.18 0.85 1.18 
30+ day delinquency rate (f)
Home Lending (g)1.08 %1.07 %1.15 %1.62 %1.30 %1.08 %1.30 %
Card1.01 1.40 1.68 1.57 1.71 1.01 1.71 
Auto0.42 0.42 0.69 0.54 0.54 0.42 0.54 
90+ day delinquency rate - Card (f)0.54 0.80 0.92 0.69 0.93 0.54 0.93 
Allowance for loan losses
Consumer & Business Banking $897 $1,022 $1,372 $1,372 $1,372 (12)(35)$897 $1,372 (35)
Home Lending630 1,238 1,813 2,685 2,957 (49)(79)630 2,957 (79)
Card12,500 14,300 17,800 17,800 17,800 (13)(30)12,500 17,800 (30)
Auto 817 892 1,042 1,044 1,044 (8)(22)817 1,044 (22)
Total allowance for loan losses$14,844 $17,452 $22,027 $22,901 $23,173 (15)(36)$14,844 $23,173 (36)
In the fourth quarter of 2020, the Firm realigned certain wealth management clients from AWM to CCB. Prior-period amounts have been revised to conform with the current presentation. Refer to Business segment changes on page 65 of the Firm’s 2020 Form 10-K for further information.
(a)At June 30, 2021, March 31, 2021, December 31, 2020, September 30, 2020 and June 30, 2020, nonaccrual loans excluded mortgage loans 90 or more days past due and insured by U.S. government agencies of $661 million, $458 million, $558 million, $851 million and $561 million, respectively. These amounts have been excluded based upon the government guarantee.
(b)In the third quarter of 2020, the Firm reclassified certain fair value option elected lending-related positions from trading assets to loans. Prior-period amounts have been revised to conform with the current presentation.
(c)Generally excludes loans that were under payment deferral programs offered in response to the COVID-19 pandemic. Beginning in the third quarter of 2020, includes loans to customers that have exited COVID-19 payment deferral programs and are 90 or more days past due, predominantly all of which were considered collateral-dependent at time of exit from COVID-19 payment deferral programs and charged down to the lower of amortized cost or fair value of the underlying collateral less costs to sell.
(d)Prior-period amounts have been revised to conform with the current presentation.
(e)At June 30, 2021, March 31, 2021, December 31, 2020, September 30, 2020 and June 30, 2020 included $16.7 billion, $23.4 billion, $19.2 billion, $20.3 billion and $19.9 billion of loans, respectively, under the PPP. Given that PPP loans are guaranteed by the SBA, the Firm does not expect to realize material credit losses on these loans. Refer to page 113 of the Firm’s 2020 Form 10-K for further information on the PPP.
(f)At June 30, 2021, March 31, 2021, December 31, 2020, September 30, 2020 and June 30, 2020, the principal balance of loans under payment deferral programs offered in response to the COVID-19 pandemic were as follows: (1) $5.2 billion, $8.1 billion, $9.1 billion, $10.2 billion and $18.2 billion in Home Lending, respectively; (2) $55 million, $105 million, $264 million, $368 million and $4.4 billion in Card, respectively; and (3) $89 million, $127 million, $376 million, $411 million and $12.3 billion in Auto, respectively. Loans that are performing according to their modified terms are generally not considered delinquent.
(g)At June 30, 2021, March 31, 2021, December 31, 2020, September 30, 2020 and June 30, 2020, excluded mortgage loans 30 or more days past due and insured by U.S. government agencies of $755 million, $557 million, $744 million, $1.1 billion and $826 million, respectively. These amounts have been excluded based upon the government guarantee.
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CONSUMER & COMMUNITY BANKING
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except ratio data and where otherwise noted)
QUARTERLY TRENDSSIX MONTHS ENDED JUNE 30,
2Q21 Change2021 Change
2Q211Q214Q203Q202Q201Q212Q20202120202020
BUSINESS METRICS
Number of:
Branches4,869 4,872 4,908 4,960 4,923 — %(1)%4,869 4,923 (1)%
Active digital customers (in thousands) (a)56,915 56,671 55,274 54,779 54,505 — 4 56,915 54,505 4 
Active mobile customers (in thousands) (b)42,896 41,872 40,899 40,164 39,044 2 10 42,896 39,044 10 
Debit and credit card sales volume (in billions)$344.3 $290.3 $299.4 $278.2 $237.6 19 45 $634.6 $503.6 26 
Consumer & Business Banking
Average deposits $1,028,459 $960,662 $907,884 $874,325 $821,624 7 25 $994,748 $773,297 29 
Deposit margin 1.28 %1.29 %1.41 %1.43 %1.52 %1.29 %1.77 %
Business banking origination volume (c)$2,180 $10,035 $722 $1,352 $23,042 (78)(91)$12,215 $24,533 (50)
Client investment assets (d)673,675 636,962 590,206 (g)529,196 494,390 636673,675 494,390 36 
Number of client advisors4,571 4,500 4,417 4,290 4,259 2 7 4,571 4,259 7 
Home Lending (in billions)
Mortgage origination volume by channel
Retail $22.7 $23.0 $20.1 $20.7 $18.0 (1)26 $45.7 $32.1 42 
Correspondent 16.9 16.3 12.4 8.3 6.2 4 173 33.2 20.2 64 
Total mortgage origination volume (e)$39.6 $39.3 $32.5 $29.0 $24.2 1 64 $78.9 $52.3 51 
Third-party mortgage loans serviced (period-end)463.9 443.2 447.3 454.8 482.4 5 (4)463.9 482.4 (4)
MSR carrying value (period-end)4.5 4.5 3.3 3.0 3.1 — 45 4.5 3.1 45 
Ratio of MSR carrying value (period-end) to third-party mortgage loans serviced (period-end)0.97 %1.02 %0.74 %0.66 %0.64 %0.97 %0.64 %
MSR revenue multiple (f)3.59 x3.78 x2.64 x2.28 x2.29 x3.59 x2.21 x
Credit Card
Credit card sales volume, excluding Commercial Card (in billions)$223.7 $183.7 $197.0 $178.1 $148.5 22 51 407.4 327.6 24 
Net revenue rate11.32 %11.53 %11.22 %10.96 %11.02 %11.43 %10.76 %
Auto
Loan and lease origination volume (in billions)$12.4 $11.2 $11.0 $11.4 $7.7 11 61 $23.6 $16.0 48 
Average auto operating lease assets19,608 20,300 20,810 21,684 22,579 (3)(13)19,952 22,830 (13)
In the fourth quarter of 2020, the Firm realigned certain wealth management clients from AWM to CCB. Prior-period amounts have been revised to conform with the current presentation. Refer to Business segment changes on page 65 of the Firm’s 2020 Form 10-K for further information.
(a)Users of all web and/or mobile platforms who have logged in within the past 90 days.
(b)Users of all mobile platforms who have logged in within the past 90 days.
(c)Included $1.3 billion, $9.3 billion, $396 million and $21.5 billion of origination volume under the PPP for the three months ended June 30, 2021, March 31, 2021, September 30, 2020 and June 30, 2020, respectively, and $10.6 billion and $21.5 billion for the six months ended June 30, 2021 and 2020, respectively. There were no originations under the PPP for the three months ended December 31, 2020. Refer to page 113 of the Firm’s 2020 Form 10-K for further information on the PPP.
(d)Includes assets invested in managed accounts and J.P. Morgan mutual funds where AWM is the investment manager. Refer to AWM segment results on pages 20-22 for additional information.
(e)Firmwide mortgage origination volume was $44.9 billion, $43.2 billion, $37.0 billion, $36.2 billion and $28.3 billion for the three months ended June 30, 2021, March 31, 2021, December 31, 2020, September 30, 2020 and June 30, 2020, respectively, and $88.1 billion and $60.2 billion for the six months ended June 30, 2021 and 2020, respectively.
(f)Represents the ratio of MSR carrying value (period-end) to third-party mortgage loans serviced (period-end) divided by the ratio of annualized loan servicing-related revenue to third-party mortgage loans serviced (average).
(g)Prior-period amount has been revised to conform with the current presentation.
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CORPORATE & INVESTMENT BANK
FINANCIAL HIGHLIGHTS
(in millions, except ratio data)
QUARTERLY TRENDSSIX MONTHS ENDED JUNE 30,
2Q21 Change2021 Change
2Q211Q214Q203Q202Q201Q212Q20202120202020
INCOME STATEMENT
REVENUE
Investment banking fees$3,572 $2,988 $2,558 $2,165 $2,847 20 %25 %$6,560 $4,754 38 %
Principal transactions4,026 6,045 2,982 3,990 7,400 (33)(46)10,071 10,588 (5)
Lending- and deposit-related fees633 593 574 546 500 7 27 1,226 950 29 
Asset management, administration and commissions1,246 1,286 1,226 1,086 1,148 (3)9 2,532 2,409 5 
All other income435 176 462 331 409 147 6 611 499 22 
Noninterest revenue9,912 11,088 7,802 8,118 12,304 (11)(19)21,000 19,200 9 
Net interest income3,302 3,517 3,550 3,428 4,079 (6)(19)6,819 7,186 (5)
TOTAL NET REVENUE (a)13,214 14,605 11,352 11,546 16,383 (10)(19)27,819 26,386 5 
Provision for credit losses(79)(331)(581)(81)1,987 76 NM(410)3,388 NM
NONINTEREST EXPENSE
Compensation expense3,582 4,329 1,958 2,651 3,997 (17)(10)7,911 7,003 13 
Noncompensation expense2,941 2,775 2,981 3,181 2,815 6 4 5,716 5,764 (1)
TOTAL NONINTEREST EXPENSE6,523 7,104 4,939 5,832 6,812 (8)(4)13,627 12,767 7 
Income before income tax expense6,770 7,832 6,994 5,795 7,584 (14)(11)14,602 10,231 43 
Income tax expense1,785 2,092 1,645 1,486 2,133 (15)(16)3,877 2,795 39 
NET INCOME $4,985 $5,740 $5,349 $4,309 $5,451 (13)(9)$10,725 $7,436 44 
FINANCIAL RATIOS
ROE23 %27 %26 %21 %27 %25 %18 %
Overhead ratio49 49 44 51 42 49 48 
Compensation expense as percentage of total net revenue27 30 17 23 24 28 27 
REVENUE BY BUSINESS
Investment Banking$3,424 $2,851 $2,497 $2,087 $3,401 20 1 $6,275 $4,287 46 
Wholesale Payments1,453 1,392 1,427 1,332 1,387 4 5 2,845 2,801 2 
Lending229 265 193 333 270 (14)(15)494 620 (20)
Total Banking5,106 4,508 4,117 3,752 5,058 13 1 9,614 7,708 25 
Fixed Income Markets4,098 5,761 3,950 4,597 7,338 (29)(44)9,859 12,331 (20)
Equity Markets2,689 3,289 1,989 1,999 2,380 (18)13 5,978 4,617 29 
Securities Services1,088 1,050 1,053 1,029 1,097 4 (1)2,138 2,171 (2)
Credit Adjustments & Other (b)233 (3)243 169 510 NM(54)230 (441)NM
Total Markets & Securities Services8,108 10,097 7,235 7,794 11,325 (20)(28)18,205 18,678 (3)
TOTAL NET REVENUE$13,214 $14,605 $11,352 $11,546 $16,383 (10)(19)$27,819 $26,386 5 
In the fourth quarter of 2020, payment processing-only clients along with the associated revenue and expenses were realigned to CIB’s Wholesale Payments business from CCB and CB. Prior-period amounts have been revised to conform with the current presentation. Refer to Business segment changes on page 65 of the Firm’s 2020 Form 10-K for further information.
(a)Includes tax-equivalent adjustments, predominantly due to income tax credits related to alternative energy investments; income tax credits and amortization of the cost of investments in affordable housing projects; as well as tax-exempt income from municipal bonds of $763 million, $703 million, $655 million, $533 million and $591 million for the three months ended June 30, 2021, March 31, 2021, December 31, 2020, September 30, 2020 and June 30, 2020, respectively, and $1.5 billion and $1.2 billion for the six months ended June 30, 2021 and 2020, respectively. In the first quarter of 2021, in relation to the reclassification of certain deferred investment tax credits, prior-period tax-equivalent adjustment amounts have been revised to conform with the current presentation. Refer to footnote (a) on page 2 for further information.
(b)Consists primarily of centrally managed credit valuation adjustments (“CVA”), funding valuation adjustments (“FVA”) on derivatives, other valuation adjustments, and certain components of fair value option elected liabilities. Results are presented net of associated hedging activities and net of CVA and FVA amounts allocated to Fixed Income Markets and Equity Markets.
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CORPORATE & INVESTMENT BANK
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except ratio and headcount data)
QUARTERLY TRENDSSIX MONTHS ENDED JUNE 30,
2Q21 Change2021 Change
2Q211Q214Q203Q202Q201Q212Q20202120202020
SELECTED BALANCE SHEET DATA (period-end)
Total assets (a)$1,363,992 $1,355,123 $1,095,926 $1,088,282 $1,080,189 1 %26 %$1,363,992 $1,080,189 26 %
Loans:
Loans retained (b)144,764 134,134 133,296 126,841 140,770 8 3 144,764 140,770 3 
Loans held-for-sale and loans at fair value (c)(d)56,668 45,846 39,588 33,046 34,017 24 67 56,668 34,017 67 
Total loans 201,432 179,980 172,884 159,887 174,787 12 15 201,432 174,787 15 
Equity83,000 83,000 80,000 80,000 80,000 — 4 83,000 80,000 4 
SELECTED BALANCE SHEET DATA (average)
Total assets (a)$1,371,218 $1,293,864 $1,139,424 $1,099,618 $1,166,867 6 18 1,332,755 $1,124,389 19 
Trading assets - debt and equity instruments (d)469,625 464,692 442,443 425,789 421,953 1 11 467,172 410,229 14 
Trading assets - derivative receivables73,642 77,735 77,946 78,339 76,710 (5)(4)75,678 65,922 15 
Loans:
Loans retained (b)140,096 136,794 128,765 131,187 154,038 2 (9)138,454 141,438 (2)
Loans held-for-sale and loans at fair value (c)(d)52,376 45,671 36,228 30,205 33,538 15 56 49,042 34,374 43 
Total loans192,472 182,465 164,993 161,392 187,576 5 3 187,496 175,812 7 
Equity83,000 83,000 80,000 80,000 80,000 — 4 83,000 80,000 4 
Headcount 64,261 62,772 61,733 61,830 60,950 2 5 64,261 (j)60,950 5 
CREDIT DATA AND QUALITY STATISTICS
Net charge-offs/(recoveries)$(12)$(7)$88 $23 $204 (71)NM$(19)$259 NM
Nonperforming assets:
Nonaccrual loans:
Nonaccrual loans retained (e)783 842 1,008 1,178 1,195 (7)(34)783 1,195 (34)
Nonaccrual loans held-for-sale and loans at fair value (d)(f)1,187 1,266 1,662 2,111 1,510 (6)(21)1,187 1,510 (21)
Total nonaccrual loans 1,970 2,108 2,670 3,289 2,705 (7)(27)1,970 2,705 (27)
Derivative receivables481 284 56 140 108 69 345 481 108 345 
Assets acquired in loan satisfactions95 97 85 88 35 (2)171 95 35 171 
Total nonperforming assets 2,546 2,489 2,811 3,517 2,848 2 (11)2,546 2,848 (11)
Allowance for credit losses:
Allowance for loan losses1,607 1,982 2,366 2,863 3,039 (i)(19)(47)1,607 3,039 (47)
Allowance for lending-related commitments1,902 1,602 1,534 1,706 1,634 (i)19 16 1,902 1,634 16 
Total allowance for credit losses3,509 3,584 3,900 4,569 4,673 (2)(25)3,509 4,673 (25)
Net charge-off/(recovery) rate (b)(g)(0.03)%(0.02)%0.27 %0.07 %0.53 %(0.03)%0.37 %
Allowance for loan losses to period-end loans retained (b)1.11 1.48 1.77 2.26 2.16 (i)1.11 2.16 
Allowance for loan losses to period-end loans retained,
excluding trade finance and conduits (h)1.53 2.06 2.54 3.15 2.87 (i)1.53 2.87 
Allowance for loan losses to nonaccrual loans retained (b)(e)205 235 235 243 254 (i)205 254 
Nonaccrual loans to total period-end loans (d)0.98 1.17 1.54 2.06 1.55 0.98 1.55 
In the fourth quarter of 2020, payment processing-only clients along with the associated revenue and expenses were realigned to CIB’s Wholesale Payments business from CCB and CB. Prior-period amounts have been revised to conform with the current presentation. Refer to Business segment changes on page 65 of the Firm’s 2020 Form 10-K for further information.
(a)In the first quarter of 2021, the Firm reclassified certain deferred investment tax credits. Prior-period amounts have been revised to conform with the current presentation. Refer to footnote (a) on page 2 for further information.
(b)Loans retained includes credit portfolio loans, loans held by consolidated Firm-administered multi-seller conduits, trade finance loans, other held-for-investment loans and overdrafts.
(c)Loans held-for-sale and loans at fair value primarily reflect lending related positions originated and purchased in CIB Markets, including loans held for securitization.
(d)In the third quarter of 2020, the Firm reclassified certain fair value option elected lending-related positions from trading assets to loans and other assets. Prior-period amounts have been revised to conform with the current presentation.
(e)Allowance for loan losses of $180 million, $174 million, $278 million, $320 million and $340 million were held against nonaccrual loans at June 30, 2021, March 31, 2021, December 31, 2020, September 30, 2020 and June 30, 2020, respectively.
(f)At June 30, 2021, March 31, 2021, December 31, 2020, September 30, 2020 and June 30, 2020, nonaccrual loans excluded mortgage loans 90 or more days past due and insured by U.S. government agencies of $316 million, $340 million, $316 million, $297 million and $135 million, respectively. These amounts have been excluded based upon the government guarantee.
(g)Loans held-for-sale and loans at fair value were excluded when calculating the net charge-off/(recovery) rate.
(h)Management uses allowance for loan losses to period-end loans retained, excluding trade finance and conduits, a non-GAAP financial measure, to provide a more meaningful assessment of CIB’s allowance coverage ratio.
(i)Prior-period amounts have been revised to conform with the current presentation.
(j)During the six months ended June 30, 2021, 1,155 technology and risk management employees transferred from Corporate to CIB.
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CORPORATE & INVESTMENT BANK
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except where otherwise noted)
QUARTERLY TRENDSSIX MONTHS ENDED JUNE 30,
2Q21 Change2021 Change
2Q211Q214Q203Q202Q201Q212Q20202120202020
BUSINESS METRICS
Advisory$916 $680 $835 $428 $602 35 %52 %$1,596 $1,105 44 %
Equity underwriting1,063 1,056 718 732 977 1 9 2,119 1,308 62 
Debt underwriting1,593 1,252 1,005 1,005 1,268 27 26 2,845 2,341 22 
Total investment banking fees$3,572 $2,988 $2,558 $2,165 $2,847 20 25 $6,560 $4,754 38 
Client deposits and other third-party liabilities (average) (a)721,882 705,764 683,818 634,961 607,902 2 19 713,868 561,183 27 
Merchant processing volume (in billions) (b) 475.2 425.7 444.5 406.1 371.9 12 28 $900.9 $746.7 21 
Assets under custody (“AUC”) (period-end) (in billions)$32,122 $31,251 $30,980 $28,628 $27,447 3 17 $32,122 $27,447 17 
95% Confidence Level - Total CIB VaR (average) (c)
CIB trading VaR by risk type: (d)
Fixed income$39 $125 $106 $93 $129 (69)(70)
Foreign exchange 6 11 12 13 9 (45)(33)
Equities18 22 23 26 27 (18)(33)
Commodities and other22 33 36 33 32 (33)(31)
Diversification benefit to CIB trading VaR (e) (44)(90)(85)(76)(69)51 36 
CIB trading VaR (d)41 101 92 89 128 (59)(68)
Credit portfolio VaR (f)6 8 12 15 22 (25)(73)
Diversification benefit to CIB VaR (e)(6)(10)(13)(14)(23)40 74 
CIB VaR$41 $99 $91 $90 $127 (59)(68)
(a)Client deposits and other third-party liabilities pertain to the Wholesale Payments and Securities Services businesses.
(b)Represents total merchant processing volume across CIB, CCB and CB.
(c)Effective July 1, 2020, the Firm refined the scope of VaR to exclude certain asset-backed fair value option elected loans, and included them in other sensitivity-based measures to more effectively measure the risk from these loans. In the absence of this refinement, the average VaR for each of the following reported components would have been different by the following amounts: CIB fixed income of $2 million, $21 million, $28 million and $15 million, CIB trading VaR of $(1) million, $19 million, $24 million and $11 million, and CIB VaR of zero, $20 million, $24 million and $12 million for the three months ended June 30, 2021, March 31, 2021, December 31, 2020 and September 30, 2020, respectively.
(d)CIB trading VaR includes substantially all market-making and client-driven activities, as well as certain risk management activities in CIB, including credit spread sensitivity to CVA. Refer to VaR measurement on pages 137–139 of the Firm’s 2020 Form 10-K, and pages 66–68 of the Firm’s Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2021 for further information.
(e)Average portfolio VaR was less than the sum of the VaR of the components described above, which is due to portfolio diversification. The diversification effect reflects the fact that the risks were not perfectly correlated.
(f)Credit portfolio VaR includes the derivative CVA, hedges of the CVA and hedges of the retained loan portfolio, which are reported in principal transactions revenue. This VaR does not include the retained loan portfolio, which is not reported at fair value.
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COMMERCIAL BANKING
FINANCIAL HIGHLIGHTS
(in millions, except ratio data)
QUARTERLY TRENDSSIX MONTHS ENDED JUNE 30,
2Q21 Change2021 Change
2Q211Q214Q203Q202Q201Q212Q20202120202020
INCOME STATEMENT
REVENUE
Lending- and deposit-related fees $350 $331 $325 $304 $297 6 %18 %$681 $558 22 %
All other income 600 586 550 457 526 2 14 1,186 873 36 
Noninterest revenue 950 917 875 761 823 4 15 1,867 1,431 30 
Net interest income1,533 1,476 1,588 1,524 1,577 4 (3)3,009 3,134 (4)
TOTAL NET REVENUE (a)2,483 2,393 2,463 2,285 2,400 4 3 4,876 4,565 7 
Provision for credit losses(377)(118)(1,181)(147)2,431 (219)NM(495)3,441 NM
NONINTEREST EXPENSE
Compensation expense 484 482 460 492 430 — 13 966 902 7 
Noncompensation expense497 487 490 477 463 2 7 984 977 1 
TOTAL NONINTEREST EXPENSE981 969 950 969 893 1 10 1,950 1,879 4 
Income/(loss) before income tax expense/(benefit)1,879 1,542 2,694 1,463 (924)22 NM3,421 (755)NM
Income tax expense/(benefit)459 374 660 377 (243)23 NM833 (213)NM
NET INCOME/(LOSS)$1,420 $1,168 $2,034 $1,086 $(681)22 NM$2,588 $(542)NM
REVENUE BY PRODUCT
Lending$1,172 $1,168 $1,177 $1,138 $1,127 — 4 $2,340 $2,081 12 
Wholesale payments 914 843 945 867 925 8 (1)1,757 1,903 (8)
Investment banking (b)370 350 318 260 256 6 45 720 491 47 
Other27 32 23 20 92 (16)(71)59 90 (34)
TOTAL NET REVENUE (a)$2,483 $2,393 $2,463 $2,285 $2,400 4 3 $4,876 $4,565 7 
Investment banking revenue, gross (c)$1,164 $1,129 $971 $840 $851 3 37 $2,293 $1,537 49 
REVENUE BY CLIENT SEGMENT
Middle Market Banking $1,009 $916 $947 $880 $870 10 16 $1,925 $1,813 6 
Corporate Client Banking 851 851 856 808 866 — (2)1,702 1,539 11 
Commercial Real Estate Banking599 604 630 576 566 (1)6 1,203 1,107 9 
Other24 22 30 21 98 9 (76)46 106 (57)
TOTAL NET REVENUE (a)$2,483 $2,393 $2,463 $2,285 $2,400 4 3 $4,876 $4,565 7 
FINANCIAL RATIOS
ROE23 %19 %36 %19 %(13)%21 %(6)%
Overhead ratio40 40 39 42 37 40 41 
In the fourth quarter of 2020, payment processing-only clients along with the associated revenue and expenses were realigned to CIB’s Wholesale Payments business from CCB and CB. Prior-period amounts have been revised to conform with the current presentation. Refer to Business segment changes on page 65 of the Firm’s 2020 Form 10-K for further information.
(a)Total net revenue included tax-equivalent adjustments from income tax credits related to equity investments in designated community development entities and in entities established for rehabilitation of historic properties, as well as tax-exempt income related to municipal financing activities of $78 million, $73 million, $107 million, $82 million and $80 million for the three months ended June 30, 2021, March 31, 2021, December 31, 2020, September 30, 2020 and June 30, 2020, respectively, and $151 million and $161 million for the six months ended June 30, 2021 and 2020, respectively. In the first quarter of 2021, in relation to the reclassification of certain deferred investment tax credits, prior-period tax-equivalent adjustment amounts have been revised to conform with the current presentation. Refer to footnote (a) on page 2 for further information.
(b)Includes CB’s share of revenue from investment banking products sold to CB clients through the CIB.
(c)Refer to page 65 of the Firm’s 2020 Form 10-K for discussion of revenue sharing.
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COMMERCIAL BANKING
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except headcount and ratio data)QUARTERLY TRENDSSIX MONTHS ENDED JUNE 30,
2Q21 Change2021 Change
2Q211Q214Q203Q202Q201Q212Q20202120202020
SELECTED BALANCE SHEET DATA (period-end)
Total assets (a)$226,022 $223,583  $228,911 $228,583 $235,034 1 %(4)%$226,022 $235,034 (4)%
Loans:
Loans retained200,929 202,975 207,880 214,352 223,192 (1)(10)200,929 223,192 (10)
Loans held-for-sale and loans at fair value3,381 2,884 2,245 349 917 17 269 3,381 917 269 
Total loans$204,310 $205,859 $210,125 $214,701 $224,109 (1)(9)$204,310 $224,109 (9)
Equity24,000 24,000 22,000 22,000 22,000 — 9 24,000 22,000 9 
Period-end loans by client segment
Middle Market Banking (b)$59,314 $59,983 $61,115 $61,812 $64,211 (1)(8)$59,314  $64,211 (8)
Corporate Client Banking44,866 45,540 47,420 49,857 56,182 (1)(20)44,866 56,182 (20)
Commercial Real Estate Banking 99,858 100,035 101,146 102,484 103,117 — (3)99,858 103,117 (3)
Other272 301 444 548 599 (10)(55)272 599 (55)
Total loans (b)$204,310 $205,859 $210,125 $214,701 $224,109 (1)(9)$204,310  $224,109 (9)
SELECTED BALANCE SHEET DATA (average)
Total assets (a)$226,562 $225,574 $227,431 $231,691 $247,512 — (8)$226,071 $236,792 (5)
Loans:
Loans retained202,102 204,164 210,621 217,498 233,044 (1)(13)203,127 221,516 (8)
Loans held-for-sale and loans at fair value3,150 2,578 1,554 629 502 22 NM2,866 1,167 146 
Total loans$205,252 $206,742 $212,175 $218,127 $233,546 (1)(12)$205,993 $222,683 (7)
Client deposits and other third-party liabilities290,250 290,992 276,694 248,289 236,968 — 22 290,619 212,888 37 
Equity24,000 24,000 22,000 22,000 22,000 — 9 24,000 22,000 9 
Average loans by client segment
Middle Market Banking $61,698 $60,011 $60,869 $63,029 $66,279 3 (7)$60,859 $61,162 — 
Corporate Client Banking 43,440 45,719 48,825 51,608 63,308 (5)(31)44,573 58,170 (23)
Commercial Real Estate Banking 99,864 100,661 101,969 102,905 103,516 (1)(4)100,260 102,521 (2)
Other250 351 512 585 443 (29)(44)301 830 (64)
Total loans$205,252 $206,742 $212,175 $218,127 $233,546 (1)(12)$205,993 $222,683 (7)
Headcount12,163 11,748 11,675 11,704 11,802 4 3 12,163 11,802 3 
CREDIT DATA AND QUALITY STATISTICS
Net charge-offs/(recoveries)$3 $29 $162 $60 $79 (90)(96)$32 $179 (82)
Nonperforming assets
Nonaccrual loans:
Nonaccrual loans retained (c)1,006 1,134  1,286 1,468  1,252 (e)(11)(20)1,006 1,252 (20)
Nonaccrual loans held-for-sale and loans  
at fair value2 —  120 85  125 (e)NM(98)2 125 (98)
Total nonaccrual loans1,008 1,134 1,406 1,553 1,377 (11)(27)1,008 1,377 (27)
Assets acquired in loan satisfactions17 24 24 24 24 (29)(29)17 24 (29)
Total nonperforming assets1,025 1,158 1,430 1,577 1,401 (11)(27)1,025 1,401 (27)
Allowance for credit losses:
Allowance for loan losses2,589 3,086  3,335 4,466  4,730 (e)(16)(45)2,589 4,730 (45)
Allowance for lending-related commitments870 753  651 864  807 (e)16 8 870 807 8 
Total allowance for credit losses3,459 3,839 3,986 5,330 5,537 (10)(38)3,459 5,537 (38)
Net charge-off/(recovery) rate (d)0.01 %0.06 %0.31 %0.11 %0.14 %0.03 %0.16 %
Allowance for loan losses to period-end loans retained1.29 1.52  1.60 2.08  2.12 (e)1.29 2.12 
Allowance for loan losses to nonaccrual loans retained (c)257 272  259 304  378 (e)257 378 
Nonaccrual loans to period-end total loans0.49 0.55 0.67 0.72 0.61 0.49 0.61 

(a)In the first quarter of 2021, the Firm reclassified certain deferred investment tax credits. Prior-period amounts have been revised to conform with the current presentation. Refer to footnote (a) on page 2 for further information.
(b)At June 30, 2021, March 31, 2021, December 31, 2020, September 30, 2020 and June 30, 2020, total loans included $5.0 billion, $7.4 billion, $6.6 billion, $6.6 billion and $6.5 billion of loans, respectively, under the PPP, of which $4.9 billion, $7.2 billion, $6.4 billion, $6.4 billion and $6.3 billion was in Middle Market Banking. Refer to page 113 of the Firm’s 2020 Form 10-K for further information on the PPP.
(c)Allowance for loan losses of $188 million, $227 million, $273 million, $367 million and $287 million was held against nonaccrual loans retained at June 30, 2021, March 31, 2021, December 31, 2020, September 30, 2020 and June 30, 2020, respectively.
(d)Loans held-for-sale and loans at fair value were excluded when calculating the net charge-off/(recovery) rate.
(e)Prior-period amounts have been revised to conform with the current presentation.
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ASSET & WEALTH MANAGEMENT
FINANCIAL HIGHLIGHTS
(in millions, except ratio and headcount data)
QUARTERLY TRENDSSIX MONTHS ENDED JUNE 30,
2Q21 Change2021 Change
2Q211Q214Q203Q202Q201Q212Q20202120202020
INCOME STATEMENT
REVENUE
Asset management, administration and commissions $3,019 $2,888 $2,892 $2,646 $2,489 5 %21 %$5,907 $5,072 16 %
All other income 146 258 87 93 86 (43)70 404 32 NM
Noninterest revenue 3,165 3,146 2,979 2,739 2,575 1 23 6,311 5,104 24 
Net interest income942 931 888 815 855 1 10 1,873 1,715 9 
TOTAL NET REVENUE4,107 4,077 3,867 3,554 3,430 1 20 8,184 6,819 20 
Provision for credit losses(10)(121)(2)(52)223 92 NM(131)317 NM
NONINTEREST EXPENSE
Compensation expense 1,356 1,389 1,323 1,232 1,178 (2)15 2,745 2,404 14 
Noncompensation expense 1,230 1,185 1,433 1,211 1,145 4 7 2,415 2,354 3 
TOTAL NONINTEREST EXPENSE2,586 2,574 2,756 2,443 2,323 — 11 5,160 4,758 8 
Income before income tax expense1,531 1,624 1,113 1,163 884 (6)73 3,155 1,744 81 
Income tax expense378 380 327 287 223 (1)70 758 414 83 
NET INCOME$1,153 $1,244 $786 $876 $661 (7)74 $2,397 $1,330 80 
REVENUE BY LINE OF BUSINESS
Asset Management $2,236 $2,185 $2,210 $1,924 $1,780 2 26 $4,421 $3,520 26 
Global Private Bank (a)
1,871 1,892 1,657 1,630 1,650 (1)13 3,763 3,299 14 
TOTAL NET REVENUE $4,107 $4,077 $3,867 $3,554 $3,430 1 20 $8,184 $6,819 20 
FINANCIAL RATIOS
ROE32 %35 %29 %32 %24 %34 %25 %
Overhead ratio63 63 71 69 68 63 70 
Pretax margin ratio:
Asset Management37 35 31 30 30 36 27 
Global Private Bank (a)38 45 26 35 21 41 24 
Asset & Wealth Management37 40 29 33 26 39 26 
Headcount20,866 20,578 20,683 21,058 21,273 1 (2)20,866 21,273 (2)
Number of Global Private Bank client advisors (a)2,435 2,462 2,462 2,520 2,409 (1)1 2,435 2,409 1 
In the fourth quarter of 2020, the Firm realigned certain wealth management clients from AWM to CCB. Prior-period amounts have been revised to conform with the current presentation. Refer to Business segment changes on page 65 of the Firm’s 2020 Form 10-K for further information.
(a)In the first quarter of 2021, the Wealth Management business was renamed Global Private Bank.
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ASSET & WEALTH MANAGEMENT
FINANCIAL HIGHLIGHTS, CONTINUED
(in millions, except ratio data)
QUARTERLY TRENDSSIX MONTHS ENDED JUNE 30,
2Q21 Change2021 Change
2Q211Q214Q203Q202Q201Q212Q20202120202020
SELECTED BALANCE SHEET DATA (period-end)
Total assets$217,284 $213,088 $203,384 (a)$187,858 (a)$176,782 (a)2 %23 %$217,284 $176,782 (a)23 %
Loans198,683 192,256 186,608 172,695 162,904 3 22 198,683 162,904 22 
Deposits217,488 217,460 198,755 166,049 160,993 — 35 217,488 160,993 35 
Equity14,000 14,000 10,500 10,500 10,500 — 33 14,000 10,500 33 
SELECTED BALANCE SHEET DATA (average)
Total assets$214,384 $207,505 $193,026 (a)$181,850 (a)$175,887 (a)3 22 $210,963 $175,361 (a)20 
Loans195,171 188,726 176,758 167,645 161,196 3 21 191,966 160,355 20 
Deposits219,699 206,562 180,348 162,589 160,102 6 37 213,167 152,336 40 
Equity14,000 14,000 10,500 10,500 10,500 — 33 14,000 10,500 33 
CREDIT DATA AND QUALITY STATISTICS
Net charge-offs$12 $11 $(16)$2 $(2)9 NM$23 $— NM
Nonaccrual loans (a)792 917 964 970 771 (14)3 792 771 3 
Allowance for credit losses:
Allowance for loan losses458 479 598 580 646 (4)(29)458 646 (29)
Allowance for lending-related commitments25 25 38 41 28 — (11)25 28 (11)
Total allowance for credit losses483 504 636 621 674 (4)(28)483 674 (28)
Net charge-off/(recovery) rate0.02 %0.02 %(0.04)%— %— %0.02 %— %
Allowance for loan losses to period-end loans0.23 0.25 0.32 0.34 0.40 0.23 0.40 
Allowance for loan losses to nonaccrual loans58 52 (a)62 (a)60 (a)84 58 84 
Nonaccrual loans to period-end loans0.40 0.48 (a)0.52 (a)0.56 (a)0.47 0.40 0.47 
In the fourth quarter of 2020, the Firm realigned certain wealth management clients from AWM to CCB. Prior-period amounts have been revised to conform with the current presentation. Refer to Business segment changes on page 65 of the Firm’s 2020 Form 10-K for further information.
(a)Prior-period amounts have been revised to conform with the current presentation.
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ASSET & WEALTH MANAGEMENT
FINANCIAL HIGHLIGHTS, CONTINUED
(in billions)
Jun 30, 2021
ChangeSIX MONTHS ENDED JUNE 30,
Jun 30,Mar 31,Dec 31,Sep 30,Jun 30,Mar 31,Jun 30,2021 Change
CLIENT ASSETS2021202120202020202020212020202120202020
Assets by asset class
Liquidity $698 $686 $641 $674 $704 2 %(1)%$698 $704 (1)%
Fixed income 688 662 671 650 618 4 11 688 618 11 
Equity725 661 595 499 448 10 62 725 448 62 
Multi-asset702 669 656 593 566 5 24 702 566 24 
Alternatives174 155 153 144 140 12 24 174 140 24 
TOTAL ASSETS UNDER MANAGEMENT2,987 2,833 2,716 2,560 2,476 5 21 2,987 2,476 21 
Custody/brokerage/administration/deposits1,057 995 936 810 765 6 38 1,057 765 38 
TOTAL CLIENT ASSETS (a)$4,044 $3,828 $3,652 $3,370 $3,241 6 25 $4,044 $3,241 25 
Assets by client segment
Private Banking$752 $718 $689 $650 $631 5 19 $752 $631 19 
Global Institutional (b)1,383 1,320 1,273 1,245 1,228 5 13 1,383 1,228 13 
Global Funds (b)852 795 754 665 617 7 38 852 617 38 
TOTAL ASSETS UNDER MANAGEMENT$2,987 $2,833 $2,716 $2,560 $2,476 5 21 $2,987 $2,476 21 
Private Banking$1,755 $1,664 $1,581 $1,422 $1,360 5 29 $1,755 $1,360 29 
Global Institutional (b)1,430 1,362 1,311 1,278 1,259 5 14 1,430 1,259 14 
Global Funds (b)859 802 760 670 622 7 38 859 622 38 
TOTAL CLIENT ASSETS (a)$4,044 $3,828 $3,652 $3,370 $3,241 6 25 $4,044 $3,241 25 
Assets under management rollforward
Beginning balance$2,833 $2,716 $2,560 $2,476 $2,210 $2,716 $2,328 
Net asset flows:
Liquidity 15 44 (36)(30)93 59 170 
Fixed income 17 8 8 22 18 25 18 
Equity20 31 14 9 11 51 10 
Multi-asset2 6 10 (1)(2)8 (4)
Alternatives10 3 1 2 3 13 3 
Market/performance/other impacts90 25 159 82 143 115 (49)
Ending balance$2,987 $2,833 $2,716 $2,560 $2,476 $2,987 $2,476 
Client assets rollforward
Beginning balance$3,828 $3,652 $3,370 $3,241 $2,891 $3,652 $3,089 
Net asset flows75 130 39 11 135 205 226 
Market/performance/other impacts141 46 243 118 215 187 (74)
Ending balance$4,044 $3,828 $3,652 $3,370 $3,241 $4,044 $3,241 
In the fourth quarter of 2020, the Firm realigned certain wealth management clients from AWM to CCB. Prior-period amounts have been revised to conform with the current presentation. Refer to Business segment changes on page 65 of the Firm’s 2020 Form 10-K for further information.
(a)Includes CCB client investment assets invested in managed accounts and J.P. Morgan mutual funds where AWM is the investment manager.
(b)In the first quarter of 2021, Institutional and Retail client segments were renamed to Global Institutional and Global Funds, respectively. This did not result in a change to the clients within either client segment.
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CORPORATE
FINANCIAL HIGHLIGHTS
(in millions, except headcount data)
QUARTERLY TRENDSSIX MONTHS ENDED JUNE 30,
2Q21 Change2021 Change
2Q211Q214Q203Q202Q201Q212Q20202120202020
INCOME STATEMENT
REVENUE
Principal transactions$(8)$272 $273 $87 $(2)NM(300)%$264 $(115)NM
Investment securities gains/(losses)(155)14 70 466 26 NMNM(141)259 NM
All other income (45)96 249 (210)(91)NM51 51 120 (58)
Noninterest revenue(208)382 592 343 (67)NM(210)174 264 (34)
Net interest income (961)(855)(841)(682)(687)(12)(40)(1,816)(852)(113)
TOTAL NET REVENUE (a)(1,169)(473)(249)(339)(754)(147)(55)(1,642)(588)(179)
Provision for credit losses49 16 (42)96 4 206 NM65 12 442 
NONINTEREST EXPENSE515 876 361 719 147 (41)250 1,391 293 375 
Income/(loss) before income tax expense/(benefit)(1,733)(1,365)(568)(1,154)(905)(27)(91)(3,098)(893)(247)
Income tax expense/(benefit)(489)(785)(210)(455)(337)38 (45)(1,274)(200)NM
NET INCOME/(LOSS)$(1,244)$(580)$(358)$(699)$(568)(114)(119)$(1,824)$(693)(163)
MEMO:
TOTAL NET REVENUE
Treasury and Chief Investment Office (“CIO”)
(1,081)(705)(623)(243)(671)(53)(61)(1,786)(502)(256)
Other Corporate(88)232 374 (96)(83)NM(6)144 (86)NM
TOTAL NET REVENUE$(1,169)$(473)$(249)$(339)$(754)(147)(55)$(1,642)$(588)(179)
NET INCOME/(LOSS)
Treasury and CIO(956)(675)(587)(349)(550)(42)(74)(1,631)(467)(249)
Other Corporate(288)95 229 (350)(18)NMNM(193)(226)15 
TOTAL NET INCOME/(LOSS)$(1,244)$(580)$(358)$(699)$(568)(114)(119)$(1,824)$(693)(163)
SELECTED BALANCE SHEET DATA (period-end)
Total assets$1,382,653 $1,409,564 $1,359,831 $1,253,275 $1,221,980 (2)13 $1,382,653 $1,221,980 13 
Loans1,530 1,627 1,657 1,569 1,670 (6)(8)1,530 1,670 (8)
Headcount 37,520 38,168 38,366 38,861 38,920 (2)(4)37,520 (d)38,920 (4)
SUPPLEMENTAL INFORMATION
TREASURY and CIO
Investment securities gains/(losses)$(155)$14 $70 $466 $26 NMNM$(141)$259 NM
Available-for-sale securities (average) 342,338 372,443 410,803 442,943 426,470 (8)(20)357,307 399,712 (11)
Held-to-maturity securities (average) (b)240,696 207,957 155,525 103,596 71,713 16 236 224,417 59,193 279 
Investment securities portfolio (average)$583,034 $580,400 $566,328 $546,539 $498,183 — 17 $581,724 $458,905 27 
Available-for-sale securities (period-end) 230,127 377,911 386,065 387,663 483,752 (39)(52)230,127 483,752 (52)
Held-to-maturity securities, net of allowance for credit losses (period-end) (b)341,476 217,452 201,821 141,553 72,908 57 368 341,476 72,908 368 
Investment securities portfolio, net of allowance for credit losses (period-end) (c)$571,603 $595,363 $587,886 $529,216 $556,660 (4)3 $571,603 $556,660 3 
(a)Included tax-equivalent adjustments, driven by tax-exempt income from municipal bonds, of $66 million, $67 million, $55 million, $62 million and $63 million for the three months ended June 30, 2021, March 31, 2021, December 31, 2020, September 30, 2020 and June 30, 2020, respectively, and $133 million and $124 million for the six months ended June 30, 2021 and 2020, respectively.
(b)During the second quarter of 2021 and the full year 2020, the Firm transferred $104.5 billion and $164.2 billion of investment securities, respectively, from AFS to HTM for capital management purposes.
(c)At June 30, 2021, March 31, 2021, December 31, 2020, September 30, 2020 and June 30, 2020, the allowance for credit losses on investment securities was $87 million, $94 million, $78 million, $120 million and $23 million, respectively.
(d)During the six months ended June 30, 2021, 1,155 technology and risk management employees transferred from Corporate to CIB.


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CREDIT-RELATED INFORMATION
(in millions)
Jun 30, 2021
Change
Jun 30,Mar 31,Dec 31,Sep 30,Jun 30,Mar 31,Jun 30,
2021202120202020202020212020
CREDIT EXPOSURE
Consumer, excluding credit card loans (a)
Loans retained$297,731 $302,392 $302,127 $305,106 $307,005 (2)%(3)%
Loans held-for-sale and loans at fair value (b)31,954 22,516 16,452 16,992 16,193 42 97 
Total consumer, excluding credit card loans329,685 324,908 318,579 322,098 323,198 1 2 
Credit card loans
Loans retained141,079 131,772 143,432 139,590 141,656 7 — 
Loans held-for-sale723 721 784 787 — — NM
Total credit card loans141,802 132,493 144,216 140,377 141,656 7 — 
Total consumer loans 471,487 457,401 462,795 462,475 464,854 3 1 
Wholesale loans (c)
Loans retained524,855 514,478 514,947 500,841 516,787 2 2 
Loans held-for-sale and loans at fair value (b)44,612 39,428 35,111 26,424 27,741 13 61 
Total wholesale loans 569,467 553,906 550,058 527,265 544,528 3 5 
Total loans 1,040,954 1,011,307 1,012,853 989,740 1,009,382 3 3 
Derivative receivables70,711 73,119 79,630 76,626 74,846 (3)(6)
Receivables from customers (d)59,609 58,180 47,710 30,847 22,403 2 166 
Total credit-related assets 1,171,274 1,142,606 1,140,193 1,097,213 1,106,631 3 6 
Lending-related commitments
Consumer, excluding credit card 56,875 56,245 57,319 (h)46,425 45,348 1 25 
Credit card (e)682,531 674,367 658,506 662,860 673,836 1 1 
Wholesale (b)502,616 481,244 449,863 441,235 413,357 4 22 
Total lending-related commitments1,242,022 1,211,856 1,165,688 1,150,520 1,132,541 2 10 
Total credit exposure $2,413,296 $2,354,462 $2,305,881 $2,247,733 $2,239,172 2 8 
Memo: Total by category
Consumer exposure (b)(f)$1,210,893 $1,188,013 $1,178,620 $1,171,760 $1,184,038 2 2 
Wholesale exposures (b)(g)1,202,403 1,166,449 1,127,261 1,075,973 1,055,134 3 14 
Total credit exposure$2,413,296 $2,354,462 $2,305,881 $2,247,733 $2,239,172 2 8 
(a)Includes scored loans held in CCB, scored mortgage and home equity loans held in AWM, and scored mortgage loans held in CIB and Corporate.
(b)In the third quarter of 2020, the Firm reclassified certain fair value option elected lending-related positions from trading assets to loans, which resulted in a corresponding reclassification of certain off-balance sheet commitments. Prior-period amounts have been revised to conform with the current presentation.
(c)Includes loans held in CIB, CB, AWM, Corporate as well as risk-rated loans held in CCB including business banking and auto dealer for which the wholesale methodology is applied when determining the allowance for loan losses.
(d)Receivables from customers reflect held-for-investment margin loans to brokerage clients in CIB, CCB and AWM; these are reported within accrued interest and accounts receivable on the Consolidated balance sheets.
(e)Also includes commercial card lending-related commitments primarily in CB and CIB.
(f)Represents total consumer loans and lending-related commitments.
(g)Represents total wholesale loans, lending-related commitments, derivative receivables, and receivables from customers.
(h)Prior-period amount has been revised to conform with the current presentation.
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CREDIT-RELATED INFORMATION, CONTINUED
(in millions, except ratio data)
Jun 30, 2021
Change
Jun 30,Mar 31,Dec 31,Sep 30,Jun 30,Mar 31,Jun 30,
2021202120202020202020212020
NONPERFORMING ASSETS (a)
Consumer nonaccrual loans
   Loans retained $5,183 $5,382 $5,464 $5,047 (e)$4,246 (4)%22 %
   Loans held-for-sale and loans at fair value (b)475 608 1,003 1,358 1,001 (22)(53)
Total consumer nonaccrual loans5,658 5,990 6,467 6,405 5,247 (6)8 
Wholesale nonaccrual loans
Loans retained2,698 3,015 3,318 3,745 3,423 (11)(21)
Loans held-for-sale and loans at fair value (b)716 701 788 852 649 2 10 
Total wholesale nonaccrual loans 3,414 3,716 4,106 4,597 4,072 (8)(16)
Total nonaccrual loans (c)9,072 9,706 10,573 11,002 9,319 (7)(3)
Derivative receivables 481 284 56 140 108 69 345 
Assets acquired in loan satisfactions249 267 277 320 288 (7)(14)
Total nonperforming assets 9,802 10,257 10,906 11,462 9,715 (4)1 
Wholesale lending-related commitments (b)(d) 851 800 577 607 765 6 11 
Total nonperforming exposure $10,653 $11,057 $11,483 $12,069 $10,480 (4)2 
NONACCRUAL LOAN-RELATED RATIOS (c)
Total nonaccrual loans to total loans (b)0.87 %0.96 %1.04 %1.11 %0.92 %
Total consumer, excluding credit card nonaccrual loans to
total consumer, excluding credit card loans (b)1.72 1.84 2.03 1.99 (e)1.62 
Total wholesale nonaccrual loans to total
wholesale loans (b)0.60 0.67 0.75 0.87 0.75 
(a)At June 30, 2021, March 31, 2021, December 31, 2020, September 30, 2020 and June 30, 2020, nonperforming assets excluded: (1) mortgage loans 90 or more days past due and insured by U.S. government agencies of $977 million, $798 million, $874 million, $1.1 billion and $696 million, respectively; and (2) real estate owned (“REO”) insured by U.S. government agencies of $7 million, $8 million, $9 million, $10 million and $13 million, respectively. Prior-period amounts of mortgage loans 90 or more days past due and insured by U.S. government agencies excluded from nonperforming assets have been revised to conform with the current presentation, refer to footnote (b) below for additional information. These amounts have been excluded based upon the government guarantee. In addition, the Firm’s policy is generally to exempt credit card loans from being placed on nonaccrual status as permitted by regulatory guidance. Refer to Note 12 of the Firm’s 2020 Form 10-K for additional information on the Firm’s credit card nonaccrual and charge-off policies.
(b)In the third quarter of 2020, the Firm reclassified certain fair value option elected lending-related positions from trading assets to loans, which resulted in a corresponding reclassification of certain off-balance sheet commitments. Prior-period amounts have been revised to conform with the current presentation.
(c)Generally excludes loans that were under payment deferral or other assistance, including amendments or waivers of financial covenants, in response to the COVID-19 pandemic.
(d)Represents commitments that are risk rated as nonaccrual.
(e)Prior-period amounts have been revised to conform with the current presentation.
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CREDIT-RELATED INFORMATION, CONTINUED
(in millions, except ratio data)
QUARTERLY TRENDSSIX MONTHS ENDED JUNE 30,
2Q21 Change2021 Change
2Q211Q214Q203Q202Q201Q212Q20202120202020
SUMMARY OF CHANGES IN THE ALLOWANCES
ALLOWANCE FOR LOAN LOSSES
Beginning balance$23,001 $28,328 $30,814 $31,591 $23,244 (19)%(1)%$28,328 $17,295 64 %
Net charge-offs:
Gross charge-offs1,188 1,468 1,471 1,586 1,877 (19)(37)2,656 3,779 (30)
Gross recoveries collected(454)(411)(421)(406)(317)(10)(43)(865)(750)(15)
Net charge-offs734 1,057 1,050 1,180 1,560 (31)(53)1,791 3,029 (41)
Provision for loan losses(2,759)(4,279)(1,433)400 9,906 (b)36 NM(7,038)17,324 (b)NM
Other(8)9 (3)3 1 NMNM1 1 — 
Ending balance$19,500 $23,001 $28,328 $30,814 $31,591 (15)(38)$19,500 $31,591 (38)
ALLOWANCE FOR LENDING-RELATED COMMITMENTS
Beginning balance$2,516 $2,409 $2,823 $2,710 $2,147 4 17 $2,409 $1,289 87 
Provision for lending-related commitments481 107 (414)114 563 (b)350 (15)588 1,421 (b)(59)
Other1 — — (1)— NMNM1 — NM
Ending balance$2,998 $2,516 $2,409 $2,823 $2,710 19 11 $2,998 $2,710 11 
Total allowance for credit losses (a)$22,498 $25,517 $30,737 $33,637 $34,301 (12)(34)$22,498 $34,301 (34)
NET CHARGE-OFF/(RECOVERY) RATES
Consumer retained, excluding credit card loans (0.04)%0.03 %0.05 %0.08 %0.11 %(0.01)%0.05 %
Credit card retained loans2.24 2.97 2.17 2.92 3.33 2.60 3.28 
Total consumer retained loans0.67 0.93 0.72 0.97 1.14 0.80 1.14 
Wholesale retained loans0.01 0.04 0.19 0.07 0.22 0.02 0.18 
Total retained loans 0.31 0.45 0.44 0.49 0.64 0.38 0.63 
Memo: Average retained loans
Consumer retained, excluding credit card loans$298,823 $302,055 $303,421 $306,201 $304,179 (1)(2)$300,430 $299,169 — 
Credit card retained loans135,430 134,155 140,459 140,200 142,377 1 (5)134,796 152,518 (12)
Total average retained consumer loans434,253 436,210 443,880 446,401 446,556 — (3)435,226 451,687 (4)
Wholesale retained loans519,902 515,858 503,249 504,449 540,248 1 (4)517,892 516,032 — 
Total average retained loans$954,155 $952,068 $947,129 $950,850 $986,804 — (3)$953,118 $967,719 (2)
(a)At June 30, 2021, March 31, 2021, December 31, 2020, September 30, 2020 and June 30, 2020 excludes allowance for credit losses on investment securities of $87 million, $94 million, $78 million, $120 million and $23 million, respectively.
(b)Prior-period amounts have been revised to conform with the current presentation.
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CREDIT-RELATED INFORMATION, CONTINUED
(in millions, except ratio data)
Jun 30, 2021
Change
Jun 30,Mar 31,Dec 31,Sep 30,Jun 30,Mar 31,Jun 30,
2021202120202020202020212020
ALLOWANCE COMPONENTS AND RATIOS
ALLOWANCE FOR LOAN LOSSES
Consumer, excluding credit card
Asset-specific (a)$(557)$(348)$(7)$228 $263 (60)%NM
Portfolio-based2,455 3,030 3,643 4,274 4,609 (19)(47)%
Total consumer, excluding credit card1,898 2,682 3,636 4,502 4,872 (29)(61)
Credit card
Asset-specific (b)443 522 633 652 642 (15)(31)
Portfolio-based12,057 13,778 17,167 17,148 17,158 (12)(30)
Total credit card12,500 14,300 17,800 17,800 17,800 (13)(30)
Total consumer14,398 16,982 21,436 22,302 22,672 (15)(36)
Wholesale
Asset-specific (c)488 529 682 792 757 (8)(36)
Portfolio-based4,614 5,490 6,210 7,720 8,162 (g)(16)(43)
Total wholesale5,102 6,019 6,892 8,512 8,919 (15)(43)
Total allowance for loan losses19,500 23,001 28,328 30,814 31,591 (15)(38)
Allowance for lending-related commitments2,998 2,516 2,409 2,823 2,710 (g)19 11 
Total allowance for credit losses (d)$22,498 $25,517 $30,737 $33,637 $34,301 (12)(34)
CREDIT RATIOS
Consumer, excluding credit card allowance, to total
consumer, excluding credit card retained loans0.64 %0.89 %1.20 %1.48 %1.59 %
Credit card allowance to total credit card retained loans8.86 10.85 12.41 12.75 12.57 
Wholesale allowance to total wholesale retained loans0.97 1.17 1.34 1.70 1.73 (g)
Wholesale allowance to total wholesale retained loans,
excluding trade finance and conduits (e)1.05 1.26 1.45 1.83 1.84 (g)
Total allowance to total retained loans2.02 2.42 2.95 3.26 3.27 
Consumer, excluding credit card allowance, to consumer,
excluding credit card retained nonaccrual loans (f)37 50 67 89 (g)115 
Total allowance, excluding credit card allowance, to retained
 nonaccrual loans, excluding credit card nonaccrual loans (f)89 104 120 148 180 (g)
Wholesale allowance to wholesale retained nonaccrual loans189 200 208 227 261 (g)
Total allowance to total retained nonaccrual loans247 274 323 350 (g)412 
(a)Includes collateral dependent loans, including those considered troubled debt restructurings (“TDRs”) and those for which foreclosure is deemed probable, modified PCD loans, and non-collateral dependent loans that have been modified or are reasonably expected to be modified in a TDR.
(b)The asset-specific credit card allowance for loan losses relates to loans that have been modified or are reasonably expected to be modified in a TDR; the Firm calculates this allowance based on the loans’ original contractual interest rates and does not consider any incremental penalty rates.
(c)Includes risk-rated loans that have been placed on nonaccrual status and loans that have been modified or are reasonably expected to be modified in a TDR.
(d)At June 30, 2021, March 31, 2021, December 31, 2020, September 30, 2020 and June 30, 2020 excludes allowance for credit losses on investment securities of $87 million, $94 million, $78 million, $120 million and $23 million, respectively.
(e)Management uses allowance for loan losses to period-end loans retained, excluding CIB’s trade finance and conduits, a non-GAAP financial measure, to provide a more meaningful assessment of the wholesale allowance coverage ratio.
(f)Refer to footnote (a) on page 25 for information on the Firm’s nonaccrual policy for credit card loans.
(g)Prior-period amounts have been revised to conform with the current presentation.
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NON-GAAP FINANCIAL MEASURES
Non-GAAP Financial Measures
(a)In addition to analyzing the Firm’s results on a reported basis, management reviews Firmwide results, including the overhead ratio, on a “managed” basis; these Firmwide managed basis results are non-GAAP financial measures. The Firm also reviews the results of the lines of business on a managed basis. The Firm’s definition of managed basis starts, in each case, with the reported U.S. GAAP results and includes certain reclassifications to present total net revenue for the Firm (and each of the reportable business segments) on an FTE basis. Accordingly, revenue from investments that receive tax credits and tax-exempt securities is presented in the managed results on a basis comparable to taxable investments and securities. These financial measures allow management to assess the comparability of revenue from year-to-year arising from both taxable and tax-exempt sources. The corresponding income tax impact related to tax-exempt items is recorded within income tax expense. These adjustments have no impact on net income as reported by the Firm as a whole or by the lines of business.
(b)Pre-provision profit is a non-GAAP financial measure which represents total net revenue less total noninterest expense. The Firm believes that this financial measure is useful in assessing the ability of a lending institution to generate income in excess of its provision for credit losses.
(c)TCE, ROTCE, and TBVPS are each non-GAAP financial measures. TCE represents the Firm’s common stockholders’ equity (i.e., total stockholders’ equity less preferred stock) less goodwill and identifiable intangible assets (other than MSRs), net of related deferred tax liabilities. ROTCE measures the Firm’s net income applicable to common equity as a percentage of average TCE. TBVPS represents the Firm’s TCE at period-end divided by common shares at period-end. TCE, ROTCE, and TBVPS are utilized by the Firm, as well as investors and analysts, in assessing the Firm’s use of equity.
(d)The ratio of the wholesale and CIB’s allowance for loan losses to period-end loans retained, excluding trade finance and conduits, is calculated excluding loans accounted for at fair value, loans held-for-sale, CIB’s trade finance loans and consolidated Firm-administered multi-seller conduits, as well as their related allowances, to provide a more meaningful assessment of the respective allowance coverage ratio.
(e)In addition to reviewing net interest income and the net yield on a managed basis, management also reviews these metrics excluding CIB Markets, as shown below; these metrics, which exclude CIB Markets, are non-GAAP financial measures. Management reviews these metrics to assess the performance of the Firm’s lending, investing (including asset-liability management) and deposit-raising activities. The resulting metrics that exclude CIB Markets are referred to as non-markets-related net interest income and net yield. CIB Markets consists of Fixed Income Markets and Equity Markets. Management believes that disclosure of non-markets-related net interest income and net yield provides investors and analysts with other measures by which to analyze the non-markets-related business trends of the Firm and provides a comparable measure to other financial institutions that are primarily focused on lending, investing and deposit-raising activities.
QUARTERLY TRENDSSIX MONTHS ENDED JUNE 30,
2Q21 Change2021 Change
(in millions, except rates)2Q211Q214Q203Q202Q201Q212Q20202120202020
Net interest income - reported$12,741 $12,889 $13,258 $13,013 $13,853 (1)%(8)%$25,630 $28,292 (9)%
Fully taxable-equivalent adjustments109 109 97 104 107 — 2 218 217 — 
Net interest income - managed basis (a)$12,850 $12,998 $13,355 $13,117 $13,960 (1)(8)$25,848 $28,509 (9)
Less: CIB Markets net interest income1,987 2,223 2,166 2,076 2,536 (11)(22)4,210 4,132 2 
Net interest income excluding CIB Markets (a)$10,863 $10,775 $11,189 $11,041 $11,424 1 (5)$21,638 $24,377 (11)
Average interest-earning assets (b)$3,177,195 $3,126,569 $2,955,646 $2,874,974 $2,819,689 2 13 $3,152,022 $2,642,619 19 
Less: Average CIB Markets interest-earning assets (b)882,848 866,591 743,337 730,141 795,511 2 11 874,764 765,681 14 
Average interest-earning assets excluding CIB Markets$2,294,347 $2,259,978 $2,212,309 $2,144,833 $2,024,178 2 13 $2,277,258 $1,876,938 21 
Net yield on average interest-earning assets - managed basis1.62 %1.69 %1.80 %1.82 %1.99 %1.65 %2.17 %
Net yield on average CIB Markets interest-earning assets0.90 1.04 1.16 1.13 1.28 0.97 1.09 
Net yield on average interest-earning assets excluding CIB Markets1.90 1.93 2.01 2.05 2.27 1.92 2.61 
(a) Interest includes the effect of related hedges. Taxable-equivalent amounts are used where applicable.
(b) In the third quarter of 2020, the Firm reclassified certain fair value option elected lending-related positions from trading assets to loans and other assets. Prior-period amounts have been revised to conform with the current presentation.







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